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Marizza181 [45]
3 years ago
6

Table : Alpo McBurgers

Business
1 answer:
Anna71 [15]3 years ago
8 0

Answer:

b. 3 McBurgers and 2 cans of Alpo

Explanation:

If the goal is to maximize utility, Ms. Tightwad should look into purchasing the combination that yields the highest utility.

a. 4 McBurgers, 0 Alpo cans:

U_a = 40

b. 3 McBurgers, 2 Alpo cans:

U_b = 36+13 = 49

c. 2 McBurgers, 4 Alpo cans:

U_c = 28+17 = 45

d. 1 McBurger, 6 Alpo cans (assume marginal utility stays constant after the 4th can):

U_d = 16+17+2 = 35

Since option b. yields the highest utility, she should buy 3 McBurgers and 2 cans of Alpo

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