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John gets a weekly allowance of $20 from his parents. The only thing he has a real interest in buying is a big slice of pizza after school for $2 per slice. Below shows his marginal utility for each slice consumed. Number of Pizza Slices Marginal Utility per Pizza Slice Marginal Utility Per Funnel Cake 1 20 50 2 12 40 3 10 32 4 6 20 5 2 12 6 0 0 7 -2 -12 8 -6 -20 a) What is the optimal quantity of pizza slices for John to buy

Respuesta :

the optimal quantity of pizza slices for John to buy is 1.

Determining the optimal quantity

According to economics, the optimal quantity of a good that should be consumed is the quantity at which the marginal utility equals the marginal cost.

Marginal utility is the change in utility when consumption is increased by one unit. Marginal cost is the change in total cost when consumption is increased by one unit. The unit at which marginal cost is equal to marginal utility is 1.

To learn more about marginal utility, please check: https://brainly.com/question/16859357

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