Question

Rick eats only french fries and burgers at his office cafeteria. His weekly lunch budget is $48. Each burger costs $6 and each order of fries costs $3. When deciding how much of each good to buy, Rick knows that 2 burgers and 4 orders of french fries will give him a utility of 8. At his utility-maximizing point, Rick's utility is:

Answer 1

Answer: 32

Explanation:

Since each burger cost $6

2 burgers = 6×2 = $12

Each fries cost $3

4 fries = 4×3

= $12

Total cost of his orders = 12+12 =$24

Since is weekly budget is $48

Hence,

48-32 = 8

Since he has 8 utility left. He only has a total order of $ 32