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1.You are giving a $26 gift certificate at Grocery Market A.At this grocery store you can spend it on either bags apples or oranges. A

1.You are giving a $26 gift certificate at Grocery Market A.At this grocery store you can spend it on either bags apples or oranges. A bag of apples cost $2 and oranges $5. The marginal utilities derived from each product are as shown in the following table.

Number of Items

MU of Apples

MU of Oranges

1

60

150

2

50

140

3

40

120

4

30

100

5

20

80

6

10

70

7

5

50

8

0

20

A.Which combination would give you the maximum utility out of spending $26? Must show work.

B.Calculate the total utility from the maximum utility output. Must show work.

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