Answer to Question #66489 in Microeconomics for Chris

Question

How much total utility does Nathan receive from the $50.00 of expenditures?

Answer 1

To find how much total utility Nathan receives from the $50.00 of expenditures, we need to know the utility-maximizing amount of consumption of beer and tutoring, then we should calculate the total utility at that level of consumption of beer and tutoring (total utility is the sum of marginal utilities) and then we should add this total utilities.