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Unformatted text preview: 's Utility-Maximizing Combination Movies Total utility Quantity from movies per month Total utility and bowling per month Bowling Games Total utility a b c d e f 0 1 2 2 3 4 5 0 50 88 88 121 150 175 291 310 313 302 267 175 291 260 225 225 181 117 0 10 8 6 4 2 0 Maximizing Utility The marginal utility per dollar spent is the marginal utility obtained from the last unit of the good, divided by its price. Marginal utility from movies = Marginal utility from bowling Price of bowling OR MUm Pm = MUb Pb Price of a movie Q 1 2 3 4 5 6 7 8 9 10 Movies - $6 MU MU / $ 50 8.33 38 6.33 33 5.50 29 4.83 25 4.17 Bowling - $3 MU MU / $ 75 25.00 42 14.00 36 12.00 28 9.33 25 8.33 19 6.33 18 6.00 17 16 15 5.67 5.33 5.00 Equalizing Marginal Utilities per Dollar Spent Movies ($6 each) Marginal utility Marginal per dollar Quantity utility spent Bowling ($3 per game) Marginal Quantity utility Marginal utility per dollar spent a b c c d e f 0 1 2 2 3 4 5 0 50 38 38 33 29 25 8.33 6.33 6.33 5.50 4.83 4.17 10 8 6 6 4 2 0 15 17 19 19 28 42 0 5.00 5.67 6.33...
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