Tammy derives utility from cheeseburgers and tacos according to the following

schedule

Cheeseburgers Tacos

TU MU MU/$ # consumers TU MU MU/$

22 1 16

40 2 26

56 3 35

70 4 43

82 5 50

92 6 55

96 7 58

98 8 60

90 9 60

A cheeseburger costs $2.00 and a taco costs $ 1.00. Tammy's fast food budget is $18.oo.

a. Complete the marginal utility and marginal utility per dollar columns

b. Assuming no half units may be bought and Tammy spends her entire budget, how

cheeseburgers and how many tacos should Tammy consume in order to maximize her

utility?

c. If Tammy consumes the utility maximizing amount of cheeseburgers and tacos, what would

be Tammy's total utility (how many utils will she get)?

d. Give at least 2 examples of ways Tammy's utility could improve.