Posted by **christina** on Monday, October 19, 2009 at 10:39am.

If tbone steak cost 12.00 a lb and 1st util is 48, 2nd is 42, and 3rd util is 36 and we also buy ground round at 4.00 a lb and we derive 24 utils for the 1st lb, 16 for the second and 12 for the third and all we have to spend is 40.00 then how many lbs. of t-bone and ground round do we have to buy to be in consumer equilibrium ?

- economics -
**economyst**, Monday, October 19, 2009 at 11:22am
To maximize utility, a consumer should purchase the item that provides the highest marginal utility per dollar. Then the next highest, then the next highest until the consumer runs out of money.

So divide the MUs by the price and keep picking items until you run out of money.

I get the consumer will choose 2.667 lbs tbone and 2 lbs ground round OR 2.333 lbs tbone and 3 lbs ground round. (both answers give the same total utility)

## Answer this Question

## Related Questions

Physics - I am a little confused about kinetic and potential energy regarding ...

math - 6 runners run in a 500 yard dash. Prizes are awarded for 1st, 2nd, and ...

science - Is venus the 1st, 2nd, 3rd, 4th, 5th, 6th, 7th, 8th or 9th smallest ...

Math.G.P - The 1st term of a G.P is equal to x-2,the 3rd term is x+6 and the ...

Mathematrics - Each diagram in the sequence is obtained by drawing of a 1 unit ...

Grammar Advisor - I just cannot figure out if these answers are correct or not. ...

conditional sentence - 1. If the sound system hadn't failed,last night's show ...

mathematics - find the number in an A.P such that the sum of 1st and 3rd term is...

calculus - 1st digit is square root of 2nd digit 2nd digit is square of 1st sum ...

Java help please - I am trying to run the following program and am getting this ...