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Assume you can only spend your money on chocolate bars, candies, and cupcakes. A chocolate bar costs $1.00, a candy costs $1.00, and a cupcake

Assume you can only spend your money on chocolate bars, candies, and cupcakes. A chocolate bar costs $1.00, a candy costs $1.00, and a cupcake cost $0.50. The table below shows the marginal utility per dollar spent on each snack.

Quantity MU/P (choco-bars) MU/P (candies) MU/P (cupcakes)
1 15 14 12
2 13 11 9
3 11 9 8
4 9 7 7
5 7 5 6
6 5 3 4
7 3 1 2
8 1 0 0
9 -1 -1 -3
10 -2 -3 -5
11 -4 -5 -8
12 -7 -7 -15

If you have $8.00 to spend, how many of each item would you purchase in order to maximize utility?

4 chocolate bars, 3 candies, and 2 cupcakes

3 chocolate bars, 3 candies, and 3 cupcakes

2 chocolate bars, 1 candy, and 1 cupcake

3 chocolate bars, 2 candies, and 1 cupcake

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