Friday, August 12, 2011

Help with microeconomics question about marginal and total utility....help?

I have a question on a worksheet that I am confused about. It gives me a chart of say the amount of movies per month, the total utility obtained from each time, the marginal utility of each time I go, the price and the MU/P of each. It gives the same for the number of Books purchased per month. Each is seven times. So the question is, given a budget, what quantity of books and what quantity of movies will maximize joe's level of satisfaction. I'm confused as to where to start, should I just randomly select say 4 movies find out the total cost and then add the difference in books until I reach my budget?? I hope I made sense.

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