15. Thus, if José moves from point P to point Q, he gives up 18 utils (from the T-shirt), but gains 31 utils (from the

movies).

Step 4. Gaining 31 utils and losing 18 utils is a net gain of 13. This is just another way of saying that the total

utility at Q (94 according to the last column in Table 6.3) is 13 more than the total utility at P (81).

Step 5. Thus, for José, it makes sense to give up the fourth T-shirt in order to buy two movies.

José clearly prefers point Q to point P. Now repeat this step-by-step process of decision making with marginal
utilities. José thinks about giving up the third T-shirt and surrendering a marginal utility of 20, in exchange for

purchasing two more movies that promise a combined marginal utility of 27. José prefers point R to point Q.

What if José thinks about going beyond R to point S? Giving up the second T-shirt means a marginal utility loss
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