twice as high as the price of movies, to maximize utility the last T-shirt that José chose needs to provide exactly

twice the marginal utility (MU) of the last movie. If the last T-shirt provides less than twice the marginal utility

of the last movie, then the T-shirt is providing less “bang for the buck” (i.e., marginal utility per dollar spent)

than José would receive from spending the same money on movies. If this is so, José should trade the T-shirt

for more movies to increase his total utility.
144 6 • Consumer Choices

If the last T-shirt provides more than twice the marginal utility of the last movie, then the T-shirt is providing

more “bang for the buck” or marginal utility per dollar, than if the money were spent on movies. As a result,

José should buy more T-shirts. Notice that at José’s optimal choice of point S, the marginal utility from the first

T-shirt, of 22 is exactly twice the marginal utility of the sixth movie, which is 11. At this choice, the marginal
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