Michael is not maximizing his utility

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Reference no: EM136518

Q1. Suppose that I make $15 per hour and you make $20 per hour and we both like to eat hamburgers that cost $5 each. Compare my real wage (in terms of hamburgers) to your real wage.

Q2. Michael spends $10 a month on both Pez dispensers and Superman action. His marginal-utility-to-price ratio for the Pez dispensers is 40, while his marginal-utility-to-price ratio for Superman action. Explain why Michael is not maximizing his utility and how can he change his behavior to increase his utility?

Reference no: EM136518

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