How many cups of each food will consume daily


Suppose Bill is on a low- carbohydrate diet. He can eat only three foods: Rice Krispies, cottage cheese, and popcorn. The marginal utilities for each food are tabulated below. Bill is allowed only 167 grams of carbohydrates daily. Rice Krispies, cottage cheese, and popcorn provide 25, 6, and 10 grams of carbohydrates per cup, respectively. Referring to the accompanying table, respond to the following questions:

Units of food              Marginal utility           Marginal utility           Marginal utility

(cups/day)                   of Rice Krispies          of cottage cheese        of popcorn

1                                  175                              72                                90

2                                  150                              66                                80

3                                  125                              60                                70

4                                  100                              54                                60

5                                  75                                48                                50

6                                  50                                36                                40

7                                  25                                30                                30

8                                  25                                18                                20

a. Given that Bill can consume only 167 grams of carbohydrates daily, how many cups of each food will he consume daily? Show your work.

b. Suppose Bill's doctor tells him to further reduce his carbohydrate intake to 126 grams per day. What combination will he consume?

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Microeconomics: How many cups of each food will consume daily
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