The table shows Jerry\'s total utility from lottery tickets and candy bars The p

Question

The table shows Jerry's total utility from lottery tickets and candy bars The price of a lottery ticket is $3, the price of a candy bar is $3, and Jerry has $24 a week to spend Calculate Jerry's marginal utility from the third lottery ticket and marginal utility per dollar when he buys 3 lottery tickets. Calculate Jerry's marginal utility from the third candy bar and marginal utility per dollar when he buys 3 candy bars >>>Answer to 1 decimal place Lottery tickets Candy bars Quantity Total per weekutility Quantity per weekutility Total 360 630 810 900 300 570 810 1020 4 4 Jerry's marginal utility from the third lottery ticket is 180 units The marginal utility per dollar from lottery tickets when Jerry buys 3 lottery tickets is 90 units per dollar Jerry's marginal utility from the third candy bar is |240 units The marginal utility per dollar from candy bars when Jerry buys 3 candy bars is 120 units per dollar

Explanation / Answer

1) MU from third lottery ticket = TU from 3rd ticket - TU from 2nd ticket = 810 - 630 = 180

2) MU per dollar = MU/Price = 180/3 = 60

3) MU from third candy bar = 810 - 570 = 240

4) MU per dollar = 240/3 = 80

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