Optimum level of consumption and budget allocation

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Optimal consumption. The following Table describes the demand for tickets to the opera, during the two=-week season.

Price

Ticket

Total Utility

Price/marginal Utility

$50

1

100

 

40

2

180

 

30

3

240

 

20

4

280

 

10

5

300

 

1. Complete the table.

2 .Explain your answer to part A.

3. What is the optimal level of opera consumption if the marginal utility derived from the consumption of movie tickets during the same two-week period costs $0.25 per unit?

Reference no: EM1316947

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