Suzy has just finished her economics exam and must decide whether to spend it: a) going home and just sitting around;b) going to the sauna;
c) having a couple of margaritas, or; d) going to a movie. She can do one, all, none, or any two of these things. The question is, what should she do? Here is the data: It doesn't cost anything to go home and just sit around. The marginal utility of the sauna is 40 utils and the price is $10. The marginal utility of the two margaritas is 45 utils and the price is $9 for two margaritas. The marginal utility of going to the movie is 50 utils and the price is $10. Suzy's marginal utility of a dollar is 6 utils per dollar. Choose the best answer from A) through E).
A) Choose only a.
B) Choose only b.
C) Choose only c and d
D) Do only b, c and d.
E) Choose only b and c.