Question

Marginal Utility per Dollar Quantity of Product A Total Utility Marginal Utility Marginal Utility per Dollar...

Marginal Utility per Dollar

Quantity of Product A

 Total Utility Marginal Utility

Marginal Utility per Dollar

Quantity of Product B

 Total Utility Marginal Utility

Marginal Utility per Dollar

1

24

 24 ? 1 38 38 ?
2 45 21 ? 2 74 36 ?
3 63 18 ? 3 108 34 ?
4 78 15 ? 4 140 32 ?
5 90 12 ? 5 170 30 ?
6 99 9 ? 6 198 28 ?
7 105 6 ? 7 224 26 ?

Your buddy Joseph wants your advice. He presents you with the utility schedule above and wants to know how many units of Product B he should purchase to maximize his utility. He tells you the price of Product A is $6 and the price of Product B is $10. Joseph informs you he only wants to spend $68.

How many units of Product B do you tell Joseph to purchase?

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