Alex has $18 per week in his entertainment budget. He splits his time between going to the movies and renting video games. Each movie costs $6 while each video game rental costs $3. The measured total utility of each of his activities is shown in the table below. What is Alex's utility maximizing point? Movies Total Utility Video Game Rentals Total Utility 0 0 0 0 1 40 1 30 2 75 2 55 3 105 3 76 4 130 4 92 5 160 5 106     6 114     7 116 Question 1 options:   2 movies, 2 video game rentals   0 movies, 6 video game rentals   5 movies, 7 video game rentals   1 movie, 4 video game rentals

Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter20: Consumer Choice And Elasticity
Section: Chapter Questions
Problem 4CQ
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Alex has $18 per week in his entertainment budget. He splits his time between going to the movies and renting video games. Each movie costs $6 while each video game rental costs $3. The measured total utility of each of his activities is shown in the table below. What is Alex's utility maximizing point?

Movies

Total Utility

Video Game Rentals

Total Utility

0

0

0

0

1

40

1

30

2

75

2

55

3

105

3

76

4

130

4

92

5

160

5

106

 

 

6

114

 

 

7

116

Question 1 options:

 

2 movies, 2 video game rentals

 

0 movies, 6 video game rentals

 

5 movies, 7 video game rentals

 

1 movie, 4 video game rentals

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