138k views
5 votes
Taylor's marginal utility from watching movies and marginal utility from eating out each month in utils are represented in the following table. Taylor spends exactly $100 every month on these two forms of entertainment, and the price per movie is $10 and price per dinner is $20. What is Taylor's total utility from watching movies and eating out each month?

1) 120 utils
2) 130 utils
3) 140 utils
4) 150 utils

User Nycta
by
7.7k points

1 Answer

4 votes

Final answer:

Without the provided marginal utility data for movies and eating out, it is not possible to accurately calculate Taylor's total utility from these activities. Total utility is generally the sum of marginal utilities, but this cannot be computed without the specific values.

Step-by-step explanation:

The question involves the economic concept of utility, specifically marginal utility per dollar, which suggests that an individual will allocate their budget in a way that equalizes the marginal utility per dollar across all goods and services they purchase. To find Taylor's total utility from watching movies and eating out each month, we would need the table with Taylor's marginal utilities for each level of consumption for both activities. However, since the student's question does not provide this data, we cannot calculate Taylor's total utility accurately.

Without the specific marginal utility values, we cannot sum up the individual utilities to find the total. But, generally, the total utility is the accumulation of the marginal utilities for each unit up to the quantity consumed. To maximize utility on a budget, a consumer would distribute their spending until the marginal utility per dollar is equal across all consumed goods, which is when they have reached the highest possible total utility.

User Felipe Conde
by
7.6k points