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Bruno enjoys notebooks and CDs. The price of a notebook is $5 and the price of a CD is $10. Bruno has $50 in income
Bruno enjoys notebooks and CDs. The price of a notebook is $5 and the price of a CD is $10. Bruno has $50 in income to spend A. Construct a budget line (schedule) using the first of the following table, and referencing the second. Determine the optimal consumption bundle. Fill in all blank cells. B. Calculate Marginal Utility in each of the blank cells (second table). Utility I Affordable Combinations # CDs # notebooks from bundle B D mo E F Quantity of notebooks Utility from notebooks (utils) Utility Marginal Quantity Marginal from utility of utility CDs (notebooks) CDs (CDs) (utils) 0 ON NO 1 2 2 4 6 8 10 0 70 130 180 220 250 0 80 150 210 260 300 3 4 5
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