PQUIZ4 - Util. (MU) month Util. Util. (MU) 1 50 1 22 2 80 2...

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Econ 101: Principles of Microeconomics NAME: Korinna K. Hansen Disc. Section: Practice Quiz 4 Mary has a total of $80 to spend on books or movies each month and both goods must be purchased in whole (no fractional units). Movies cost $8 each, while books cost $20 each. Her preferences for movies and books are summarized by the information below: Movies Books # per Total Marginal MU/$ # per Total Marginal MU/$ month Util.
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Unformatted text preview: Util. (MU) month Util. Util. (MU) 1 50 1 22 2 80 2 42 3 100 3 52 4 110 4 57 5 116 5 60 6 121 6 62 7 123 7 63 a) (4 points) Fill in the figures for marginal utility and marginal utility per dollar for movies and books. b) (6 points) Given her budget of $80, what quantity of books and what quantity of movies will maximize Mary's level of satisfaction? What does she buy first, next, next, etc.? When does she have to stop?...
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