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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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