Enzo is deciding whether to buy a gym membership or to pay each time he visits the gym. The table below shows Enzo's expected total utility from visiting the gym in a month.
\begin{tabular}{ll}
\# of visits & Total utility (TU) (in utils) \
\hline 1 & 40 \
2 & 78 \
3 & 112 \
4 & 140 \
5 & 160 \
6 & 170 \
7 & 170 \
8 & 160 \
9 & 140
\end{tabular}

Assume Enzo decides to purchase an unlimited gym membership that allows him to go as often as he wishes after he has paid his monthly membership fee.

What is the maximum number of times Enzo will go to the gym?
Choose 1 answer:
(A) 7 times
(B) 2 times
(C) 9 times
(D) 5 times
(E) 8 times
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Question

Enzo is deciding whether to buy a gym membership or to pay each time he visits the gym. The table below shows Enzo's expected total utility from visiting the gym in a month.
\begin{tabular}{ll} 
\# of visits & Total utility (TU) (in utils) \
\hline 1 & 40 \
2 & 78 \
3 & 112 \
4 & 140 \
5 & 160 \
6 & 170 \
7 & 170 \
8 & 160 \
9 & 140
\end{tabular}

Assume Enzo decides to purchase an unlimited gym membership that allows him to go as often as he wishes after he has paid his monthly membership fee.

What is the maximum number of times Enzo will go to the gym?
Choose 1 answer:
(A) 7 times
(B) 2 times
(C) 9 times
(D) 5 times
(E) 8 times
Show Calculator

Accepted Answer

∻Solution∻ ‖ a ⋮ Interpretation of Total Utility Table: The table shows Enzo's total utility for each number of gym visits. Total utility increases with each visit up to a certain point, after which it starts to decrease. ‖ ‖ b ⋮ Identification of Maximum Total Utility: To find the maximum number of times Enzo will go to the gym, we need to identify the visit number at which his total utility is at its highest before it starts to decline. ‖ ‖ c ⋮ Analysis of Total Utility Values: By examining the table, we see that Enzo's total utility is highest at 170 utils, which occurs at both the 6th and 7th visits. After the 7th visit, total utility remains the same and then decreases, indicating that the 7th visit is the point of maximum utility. ‖ ∻Answer∻ ⚹ 7 times ⚹ ∻Key Concept∻ ⚹ Diminishing Marginal Utility ⚹ ∻Explanation∻ ⚹ Enzo's total utility reaches its maximum at the 7th gym visit, after which it does not increase, indicating the point of diminishing marginal utility. ⚹◊How does Enzo's decision to purchase an unlimited gym membership impact his total utility in terms of Macro Economics?⍭ Generate me a similar question◊

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