Tony spends his income of $100 per week on two goods:

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Posted on September 9, 2017
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1 Tony spends his income of $100 per week on two goods:
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Tony spends his income of $100 per week on two goods:

Tony spends his income of $100 per week on two goods:

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Question
Tony spends his income of $100 per week on two goods: sandwich (which cost $8 each) and soda (which cost $1 per can). At his current level of consumption, the marginal utility from the last sandwich consumed is 32 and the marginal utility from the last soda is 4. Is Tony maximizing his utility? Why or why not? If not, what should Tony do to achieve level of utility?

Tony spends his income of $100 per week on two goods:

 

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