Question

29. 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. The total utility from each of these activities is shown in the table below. Bob’s utility maximizing point is:

            

Movies	Total Utility	Gym Costs	Total Utility
0	0	0	0
1	30	1	50
2	55	2	85
3	76	3	115
4	92	4	107
5	103	5	111
		6	114
		7	115

            

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