1.Wilbur consumes pizza and movies. The total utility obtained from pizza and movies is shown in the chart below.

Number ofTotal UtilityMarginal UtilityNumber ofTotal UtilityMarginal Utility

Pizza(utils)(utils)Movies(utils)(utils)

120114

238226

354336

468444

580550

690654

a.Complete the marginal utility schedules above.

b.Define the term diminishing marginal utility.

c.Suppose Wilbur has $50 to spend. The price of pizzas is $10 each.The price of movies is $5 each.

Wilbur decides to buy 3 pizzas and watch 4 movies. Show that the last dollar spent on pizzas gives the same utility as the last dollar spent on movies.

d.Show that Wilbur spends his entire budget on 3 pizzas and 4 movies.