From the above table we can see the MU from consumption of 6th spice is zero. Therefore, John will consume 5 slices of Pizza.
<h3> If John purchased 8 slices, what total utility would he enjoy?</h3>
When he consumes 8 slices of Pizza then the total utility that he will derive will be:
TU = 20 + 12 + 10 + 6 + 2 + 0- 2 - 6
= 42 utils.
<h3>What is the complete table that shows the marginal utility per dollar for each slice of pizza and each funnel cake?</h3>
See the attached table I in the attached.
<h3>Assuming John’s parents do not allow him to use any savings, what is his optimal consumption bundle of pizza and funnel cakes? </h3>
When John expends all of his income and cannot use his savings, he will maximize his overall utility.
Then he will maximize his TU when the MU/$ of the two commodities are equal. According to the preceding data, the MU/$ is equivalent for the following combinations. See table II in the attached.
From the chart above, we can see that he can spend up to $ 20 if he consumes three pieces of pizza and four funnel cakes.
However, because he cannot spend his funds, he will have fewer than three slices and four funnel cakes.
As a result, he will give up 1 slice of pizza because the third slice provides him a MU of 10 utils and the fourth piece of Funnel cake gives him a MU of 20 utils.
The optimal consumption basket contains two pieces of pizza and four funnel cakes.
<h3>At John’s optimal consumption bundle, what total utility will he gain?</h3>
Total Utility is given as:
(20+12)+(50+40+32+20)
= 32 + 142
= 174 utils.
Learn more about utility at;
brainly.com/question/24922430
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