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Alex has $18 per week in his entertainment budget. He splits his time between going to the movies and renting video games. Each movie costs
Alex has $18 per week in his entertainment budget. He splits his time between going to the movies and renting video games. Each movie costs $6 while each video game rental costs $3. The measures total utility of each of his activities is shown in the table below.
MoviesTUVideo Game Rentals TU
0 00 0
1 401 30
2 752 55
3 1053 76
4 1304 92
5 1605 106
6 114
7 116
1)Please make a table of movies and video game using the budget
2)Find utility-maximizing combination of movies and video games.
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