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Suppose that Jacob spends his entire (I) of $100 on concerts (C) and movies (M). The...

Suppose that Jacob spends his entire (I) of $100 on concerts (C) and movies (M). The prices of a concert (Pc) and movie (Pm) are $20 and $10, respectively. The following table summarizes the data on his marginal utity per dollar (MU/P) for each unit of concerts and movies.

((Concerts (C) (Pc = $20) ((Movies (M) (Pm = $10)

C MUc MUc/Pc M MUm MUm/Pm
1st 100 1st 60
2nd 80 2nd 45
3rd 60 3rd 40
4th 40 4th 30
5th 20 4th 30
---- ----- ------- 6th 20
-------- -------- ------- 7th 15
--------- ----------- ------------- 8th 10
-------- ------------- - ----------- 9th 8
--------- - --------- - -------- 10th 5

a) Construct his budget constraint (that is, I as a function of C and M).
b) List all affordable integer consumption bundles.
c) Find his consumer optimum amoung all of his affordable integer bundles.
d) Calculate the level of total utility he obtians from the consumer optimum.

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