The table below shows the marginal utility a costumer would get by purchasing various quantities of A, B, and C. The product prices for A, B, and C are $3, $2, and $1 respectively. The consumer has $20 to spend on the three products. What combination of the three products should be purchased in order to maximize utility?
|
Unit of product
|
(1) Marginal utility, A
|
(2) Marginal utility, B
|
(3)Marginal utility, C
|
|
First
|
30
|
22
|
12
|
|
Second
|
27
|
20
|
10
|
|
Third
|
24
|
18
|
8
|
|
Fourth
|
21
|
16
|
6
|
|
Fifth
|
18
|
14
|
4
|
|
Sixth
|
15
|
12
|
2
|
(a) 5 units of A, 6 units of B, and 4 units of C.
(b) 2 units of A, 5 units of B, and 4 units of C.
(c) 3 units of A, 4 units of B, and 3 units of C.
(d) 4 units of A, 3 units of B, and 2 units of C.