George consumes two goods, milk, and cookies. He has maximized his utility given his income, Milk costs $2 per gallon and he consumes it to the point where the marginal utility he receives from drinking a gallon of milk is 6. Cookies cost $3 per bag and the relationship between the marginal utility that George gets from eating a bag of cookies and the number of bags he eats per month is as follows: Bags of cookies Marginal Utility 21 How many bags of cookies does George buy each month? 1 2 18 15 12
George consumes two goods, milk, and cookies. He has maximized his utility given his income, Milk costs $2 per gallon and he consumes it to the point where the marginal utility he receives from drinking a gallon of milk is 6. Cookies cost $3 per bag and the relationship between the marginal utility that George gets from eating a bag of cookies and the number of bags he eats per month is as follows: Bags of cookies Marginal Utility 21 How many bags of cookies does George buy each month? 1 2 18 15 12
Microeconomics A Contemporary Intro
10th Edition
ISBN:9781285635101
Author:MCEACHERN
Publisher:MCEACHERN
Chapter6: Consumer Choice And Demand
Section: Chapter Questions
Problem 6QFR
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Transcribed Image Text:George consumes two goods, milk, and cookies. He has maximized his utility given his income, Milk costs
$2 per gallon and he consumes it to the point where the marginal utility he receives from drinking a
gallon of milk is 6. Cookies cost $3 per bag and the relationship between the marginal utility that George
gets from eating a bag of cookies and the number of bags he eats per month is as follows:
Bags of cookies
Marginal Utility 21
How many bags of cookies does George buy each month?
2
3
4.
5.
18
15
12
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