Bill uses his entire budget to purchase pepsi and hamburgers, and he currently purchases no pepsi and 6 hamburgers per week. the price of pepsi is $1 per can, the price of a hamburger is $2, bill's marginal utility from pepsi is 2, and his marginal utility from hamburgers is 6. is bill's current consumption decision optimal

The answer is: Yes, Bill's consumption decision is optimal.

Explanation:

Bill's marginal utility from consuming Pepsi is 2 units and Pepsi costs $1. So for every dollar Bill spends in Pepsi, he gets 2 units of utility.

Bill's marginal utility from consuming hamburgers is 6 units and each hamburger costs $2. So for every dollar Bill spends in hamburger, he gets 3 units of utility.

Bill's total budget is $12, and he gets 36 units of utility by consuming hamburgers. If he consumed Pepsi, he would get only 24 units of utility with the same budget.

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