Bamey is eumently maximalaing his utility and has spent all available monthly income on popoom and movie tickets. The price of a hag of popcorn is \( \$ 6 \) and movie tickets are \( \$ 13 \). Bamey's monginal utility from the last bag of popcom is 60 Using the nule of ecual marginal utility per dollar spent, we know that his marginal utlity from the last movie must be .
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To maximize utility, Bamey should allocate his income such that the marginal utility per dollar spent is equal for both goods. For popcorn, the marginal utility per dollar spent is given by dividing its marginal utility by its price: \( \frac{60}{6} = 10 \). Therefore, for the last movie ticket, the marginal utility per dollar should also be 10. Since movie tickets cost $13, we can calculate the required marginal utility from the last movie ticket to be \( 10 \times 13 = 130 \). So, Bamey’s marginal utility from the last movie must be 130 to achieve utility maximization. Remember, the idea is to balance your spending so that every dollar you spend brings you the same level of happiness from each choice!
