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Solve the following exercise: The following table shows the levels of cardinal utility that a person with two consumption options, education and entertainment: Education (days)

Solve the following exercise: The following table shows the levels of cardinal utility that a person with two consumption options, education and entertainment:

Education (days) Net profit Marginal utility Marginal utility/$ Entertainment (days) Total utililty Marginal utility Marginal utility/$
0 0 0 0
1 1000 1 2100
2 1500 2 4100
3 2200 3 5200
4 3500 4 6200
5 4300 5 6600

Entertainment per day: $210

Education per day: $200

Determine the following: :

Marginal Utility (Education and Entertainment)

Marginal utility/price (Education and entertainment)

Optimal combination of services for the consumer

According to the optimal combination result of the previous table, calculate the budgetary restriction for this consumer.

Education (days) Price Total 1 P*Q Education (days) Price per day Total 2 (P*Q) Budget restriction
5 200 0 210
4 200 1 210
3 200 2 210
2 200 3 210
1 200 4 210
0 200 5 210

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