(Table: Marginal Utility Schedule for Joachim) Joachim Has $72 Available

question 353

Multiple Choice

(Table: Marginal Utility Schedule for Joachim) Joachim has $72 available to spend on movie tickets, hamburgers, socks, and tissues. Given his marginal utility schedules for these items, what mix of goods will he buy if he seeks to maximize utility? (Note that he may or may not have $1 left over.)
$\begin{array}{|l|c|c|c|c|}\hline & \begin{array}{c}M U \text { movie ticket } \\P=\$ 10\end{array} & \begin{array}{c}M U \text { hamburger } P= \\\$ 5\end{array} & \begin{array}{c}M U \text { pair of socks } \\P=\$ 4\end{array} & \begin{array}{c}M U \text { box of tissues } \\P=\$ 3\end{array} \\\hline \text { 1st } & 30 & 17 & 6 & 3 \\\hline \text { 2nd } & 25 & 12.5 & 3 & 2 \\\hline \text { 3rd } & 18 & 10 & 1 & 1 \\\hline \text { 4th } & 8 & 4 & 0 & 0 \\\hline 5 \text { th } & 0 & 0 & & \\\hline\end{array}$

• A) three movie tickets, four hamburgers, four pairs of socks, and two boxes of tissues for a total of $72
• B) four movie tickets, three hamburgers, four pairs of socks, and no boxes of tissues for a total of $71
• C) four movie tickets, four hamburgers, two pairs of socks, and one box of tissues for a total of $71
• D) three movie tickets, four hamburgers, three pairs of socks, and three boxes of tissues for a total of $71

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Definitions:

Independent Variable

A variable in an experiment or study that is manipulated to observe its effect on a dependent variable.

SSE

Squared Error Sum, a statistical metric that quantifies the difference between observed data and a predictive model's estimates.

Sample Correlation Coefficient

A statistical measure that calculates the strength and direction of a linear relationship between two quantitative variables in a sample.

Dependent Variable

The variable in an experiment or study that is affected by changes in the independent variable, and which researchers aim to measure or predict.