Max enjoys windsurfing and snorkeling. The table to the right shows the total ut

Question

Max enjoys windsurfing and snorkeling. The table to the right shows the total utility he gets from each activity. If the price of windsurfing is $100, what is the marginal utility per dollar of the 1st hour of windsurfing?

100 utils/$220

120 utils/$40

120 utils/$100

100 utils/$120

36 utils/$40

A)

100 utils/$220

Max enjoys windsurfing and snorkeling. The table to the right shows the total utility he gets from each activity. If the price of windsurfing is $100, what is the marginal utility per dollar of the 1st hour of windsurfing? Hours per day Total utility from windsurfing Total utility from snorkeling A) 100 utils/$220 B) 120 utils/$40 C) 120 utils/$100 D) 100 utils/$120 E) 36 utils/$40

Explanation / Answer

C) 120 utils/$100

Its so because:

Marginal utility per dollar from first hour = utility in first hour/$100

=120/$100

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