Question

Jon enjoys fishing (which costs $20) and golf (which costs $30) and has $140 to spend each month on these activities. Last month, Jon fished four times and golfed twice. The last fishing outing provided Jon a marginal utility of 50, and the last round of golf provided a marginal utility of 120. What is Jon's marginal utility per dollar spent on the last time fishing

Answer 1

Fishing - 2.5 and Golfing - 4

Step-by-step explanation:

Calculation to determine What is Jon's marginal utility per dollar spent on the last time fishing and golf

Last fishing outing produced =50 / $20

Last fishing outing produced = 2.5 units of utility per dollar.

Last round of golf provided= 120 / $30

Last round of golf provided= 4 units of utility per dollar

Therefore Jon's marginal utility per dollar spent on the last time fishing and golf is Fishing - 2.5 and Golfing - 4