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Maria has $6.25 to spend on breakfast. Unfortunately, the snack bar in the building where she works has only three items: muffins at $1.50 each,

Maria has $6.25 to spend on breakfast. Unfortunately, the snack bar in the building where she works has only three items: muffins at $1.50 each, soup at $1.25, and cappuccinos at $1.00 each.

a) Given her total utility figures in table below, Complete the MU columns. Round your answers to whole numbers.

Quantity

Muffins TU

Muffins MU

Muffins MU per $

Soup TU

Soup MU

Soup MU per $

Cappuccinos TU

Cappuccinos MU

Cappuccinos MU per $

1 114 70 50
2 180 120 95
3 228 150 130
4 267 160 150
5 285 165 152

b) How should she allocate her budget?

Muffin(s): _____

Soup: ______

Cappuccino(s): ______

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a To complete the MU Marginal Utility columns we need to calculate the marginal utility for each item and the corresponding marginal utility per dollar spent Quantity Muffins TU Muffins MU Muffins MU ... blur-text-image

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