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Kim has $24 per week in her entertainment budget. She splits her time between going to the movies and yoga classes. Each movie costs $8

Kim has $24 per week in her entertainment budget. She splits her time between going to the movies and yoga classes. Each movie costs $8 while each yoga class costs $3. The total utility from each of these activities is set out in the table below. What is Kim's total utility maximizing point?

Movies

Total Utility

Yoga Classes

Total Utility

0

0

0

0

1

40

1

30

2

75

2

55

3

105

3

76

4

130

4

92

5

160

5

106

6

114

7

116

8

117

Answers:

0 movies, 8 yoga classes

1 movie, 5 yoga classes

2 movies, 2 yoga classes

3 movies, 0 yoga classes

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