# Marginal utility and optimal consumption

Not what you're looking for?

The attached table displays George's consumption of soda pop and pretzels. The price of each soda pop is $2.00 and the price of each pretzel is $5.00.

A. Fill in the missing total utility, marginal utility, and marginal utility/price (MU/Price). Place the final answer for each in the correct shaded area within the table.

B. George has $28.00 to spend on soda pop and pretzels. Determine the number of cans of soda pop and pretzels that will be optimal for George. Explain your reasoning regarding how you chose that consumption point.

##### Purchase this Solution

##### Solution Summary

Solution offers Excel and Word documents showing how to find total utility, marginal utility and MU/price for soda pop and pretzels. A excel file is used in the calculations.

##### Solution Preview

See the attachments.

QUESTION A

Bottles of Soda Pop Number of Pretzels

Bottles of Soda Pop Consumed Total Utility Marginal Utility MU/Price Number of Pretzels Consumed Total Utility Marginal Utility MU/Price

0 0 NA NA 0 0 NA NA

1 20 20 10.00 2 50 50 10.00

2 38 18 9.00 4 70 20 ...

##### Purchase this Solution

##### Free BrainMass Quizzes

##### Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

##### Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

##### Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

##### Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

##### Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.