Question: The following table shows the marginal utility a consumer receives from the weekly consumption of On-Demand movie rentals and Thai takeout meals. One On-Demand movie
The following table shows the marginal utility a consumer receives from the weekly consumption of On-Demand movie rentals and Thai takeout meals. One On-Demand movie rental costs $5, and Thai takeout costs $10 per meal. Suppose this consumer is currently (for some reason) eating Thai takeout 10 times per week and is spending all of her $100 income, so that she has no money left over for movie rentals. Is the consumer maximizing utility?
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On-Demand Thai Marginal Takeout Marginal Utility 50 30 20 15 10 Utility 50 45 Movies Meals 35 30 25 20 15 10 4 10 10
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