Question

Kim has $24 per week in her entertainment budget. She splits her time between going to the movies and yoga classes. Each movie costs $8 while each yoga class costs $3. Her total utility from 1 movie is 48 utils; her total utility from 2 movies is 75 utils; and her total utility from 3 movies is 105 utils. Her total utility from 4 yoga class is 76 utils; her total utility from 5 yoga classes is 97 utils; and her total utility from 6 yoga classes is 114 utils. What is Kim's total utility maximizing point?

a) 0 movies, 8 yoga classes

b) 1 movie, 5 yoga classes

c) 2 movies, 2 yoga classes

d) 3 movies, 0 yoga classes

Bob budgets $12 a week for entertainment. He splits his time between going to the movies and going to the gym. Each movie costs $3 and each session at the gym also costs $3. His total utility from 2 movies is 55 utils; his total utility from 3 movies is 76 utils; and his total utility from 4 movies is 92 utils. His total utility from 2 gym sessions is 85 utils; his total utility from 3 gym sessions is 106 utils; and his total utility from 4 gym sessions is 102 utils. Bob’s utility maximizing point is:

a) 3 movies; 3 gym workout sessions.

b) 4 movies; 0 gym workout sessions.

c) 4 movies; 2 gym workout sessions.

d) 1 movie; 5 gym workout sessions.

Answer 1