Suppose that Jack has a budget of $35 to spend on swimming and playing music. The price of one hour swimming is $10 and for playing music is $5 an hour. The table shows the total utility Jack gets from each activity. Hours per day Total utility from swimming Marginal utility Marginal utility per dollar Total utility from playing music Marginal utility Marginal utility per dollar 1 120 40 2 220 76 3 300 106 4 360 128 5 396 140 6 412 150 7 422 158

1. Calculate Jack’s marginal utility for both activities. 

2. Does Jack’s marginal utility from swimming and playing music follow the principle of diminishing marginal utility. Explain 

3. Which does Jack enjoy more: his 3rd hour of swimming or his 3rd hour of playing music? 

4. Calculate marginal utility per dollar for each activity . 

5. To maximize his utility, how many hours a day does Jack spend on each activity, explain your answer. 

Answer rating: 100% (QA)

1 Marginal utility change in total utilitychange in hrs Number of hrs Total utility from swimming Ma... View the full answer