Calculate marginal utility associated with each unit of good

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A consumer is deciding how many cups of coffee and how many bus tickets to purchase. The price of a bus ticket is $1.50 and the price of a cup of coffee is $2. The following table describes the total utility derived from the two goods.

Unit of Product Total Coffee Utils Total Bus Ticket Utils

First 20 10

Second 32 18

Third 40 25

Fourth 42 31

Fifth 41 35

a. Calculate the marginal utility associated with each unit of each good.

b. If the consumer’s income is $12, find the utility-maximizing combination of goods.

Reference no: EM13887829

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