Question

2. Consider the information shown for Fred the table to the right. He spends all of his daily income of $12 on bratwurst and beer. (Fred lives in Milwaukee, obviously.) Brats cost $2 each, beers costs $1 each. Fred's optimal consumption bundle will be:

1 brat and 10 beers.
2 brats and 8 beers.
3 brats and 6 beers.
4 brats and 4 beers.
5 brats and 2 beers.

Fred's Marginal Utility
Q	MU Brats	MU Beer
1	16	11
2	14	10
3	12	9
4	10	8
5	8	7
6	6	6
7	4	5
8	2	4