alex has $18 per week in his entertainment budget. he splits his time between going to the movies and renting video games. each movie costs $6 while each video game rental costs $3. the measured total utility of each of his activities is shown in the table below. what is alex's utility maximizing point?

Utility maximization is the idea that individuals and organizations want to get the most out of their economic decisions. The utility function assesses the degree to which an individual's fulfillment is met.

When Alex is going to 1 movie and rents 4 video games, he is having the total utility of 136(40+96) and he is spending total given money also.

In this case, he can spend on 5 movies and 7 video game rentals as he has limited amount of money ($18).

It should be noted that in 0 movie and 6 video game rentals, his TU is 114.

In 2 movies and 2 video game rentals his TU is 130(75+55)

The correct option is A.

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