# of CD's	Charlie Parker Marginal Utility	MUcp/Pcp P =$10	# of CD's	Lester Young Marginal Utility	MUly/Ply P = $10
0	-		0	-
1	60		1	30
2	40		2	28
3	30		3	24
4	20		4	20
5	10		5	10

Back at the milking parlor on the Yak Farm, it turns out that the yak milkers really enjoy listening to jazz while they work. One of the yak milkers decides to go out and buy some music by Charlie Parker and Lester Young. The table above includes the information on his marginal utility for the purchase of each CD. Charlie Parker CDs and Lester Young CDs both cost $10.

a. Using the table above, is the principle of diminishing marginal utility operating for Charlie Parker CDs? (1 point) Where does it set in? (2 points)

b. State the utility maximizing rule. (2 points)

c. If the yak milker purchases 2 Charlie Parker CDs, and 3 Lester Young CDs, is she/he following the utility maximizing rule? (1 point) Explainhow you know ( 4 points)

d. If the yak milker has$80 to spendand seeks to maximize his utility, how many Charlie Parker and how many Lester Young CDs would he purchase? (2 points) EXPLAIN(3 points)