Question

with a total budget available of $56.00, what does the utility-maximizing rule tell you the optimal quantity of chicken fajitas and cheese quesadillas is?

Answer 1

Using the utility-maximizing rule tells us that the optimal quantity is a.) 3 Chicken Fajitas; 2 Cheese Quesadillas

How to find the optimal quantity?

According to the utility-maximizing rule, the optimal choice is the one where the marginal utility per dollar is equalized across all goods, given the constraint of the budget.

The marginal utility of 3 Chicken Fajitas and 2 Cheese Quesadillas from the table is 65. The same quantity for 3 Chicken Fajitas ; 1 Cheese Quesadilla is 64 . This means that the highest and therefore optimal quantity, is option A , with 3 Chicken Fajitas and 2 Cheese Quesadillas.

The options for this question are:

a.) 3 Chicken Fajitas; 2 Cheese Quesadillas

b.) 2 Chicken Fajitas; 2 Cheese Quesadillas

c.) 1 Chicken Fajita; 1 Cheese Quesadilla

d.) 3 Chicken Fajitas; 1 Cheese Quesadilla