QUESTION

a)The following table gives the marginal utility of John's consumption of three goods A, B and C.

Units of Consumption Marginal utility of Marginal utility of Marginal utility of

good A good B good C

1 20 25 45

2 18 20 30

3 16 15 24

4 14 10 18

5 12 8 15

6 10 6 12

If good A, B and C cost Ksh. 2, Ksh 1 and Ksh 3 respectively, how many units of each good should John take to maximize utility with an income of Ksh 12(10 marks)