Brandon receives a marginal utility of 5, 4, 3, 2, 1, and 0 from eating successive donuts. Successive cups of coffee provide him with 9, 8, 6, 4, 3, and 2 utils of marginal utility. Donuts cost 50 cents each, coffee costs $1 per cup, and Brandon has $3 to spend. Which of the following options will yield Brandon the greatest utility? Group of answer choicessix donutsfour donuts and one cup of coffeetwo donuts and two cups of coffeefour donuts and one cup of coffee
Question
Brandon receives a marginal utility of 5, 4, 3, 2, 1, and 0 from eating successive donuts. Successive cups of coffee provide him with 9, 8, 6, 4, 3, and 2 utils of marginal utility. Donuts cost 50 cents each, coffee costs 3 to spend. Which of the following options will yield Brandon the greatest utility? Group of answer choicessix donutsfour donuts and one cup of coffeetwo donuts and two cups of coffeefour donuts and one cup of coffee
Solution
To determine which option will yield Brandon the greatest utility, we need to calculate the total utility for each option and compare them.
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Six donuts: The marginal utility of each donut is 5, 4, 3, 2, 1, and 0. Adding these up, the total utility from six donuts is 5+4+3+2+1+0 = 15 utils.
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Four donuts and one cup of coffee: The total utility from four donuts is 5+4+3+2 = 14 utils. The utility from one cup of coffee is 9 utils. So, the total utility for this option is 14+9 = 23 utils.
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Two donuts and two cups of coffee: The total utility from two donuts is 5+4 = 9 utils. The utility from two cups of coffee is 9+8 = 17 utils. So, the total utility for this option is 9+17 = 26 utils.
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Four donuts and one cup of coffee: This option is the same as the second option, so the total utility is also 23 utils.
Therefore, the option that will yield Brandon the greatest utility is two donuts and two cups of coffee.
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