12) Melquiades is worried about his grades from the microeconomics course, according to the rules for grading, the final grade is obtained as the minimum between the grade for the midterm test (x) and the final test (y). The utility function of Melquiades will depend on the grades obtained from those two tests Now, Melquiades has researched that the average student needs to study 24 minutes to obtain an additional point in each test (tests are graded from 0 to 100) a) If Melquiades has 20 hours to study for both tests (x and y), how much time would he employ for each test? Figure out the grade that Melquiades will obtain in each test and his final grade in microeconomics. Elaborate a graph. b) How much additional study time would Melquiades require to increase his final grade by 10 points. Elaborate a graph. c) Suppose the difficulty of the final test increases in such a way that now each additional point would require 26 minutes of study. What would be the total cost (in minutes) necessary to obtain a final grade of 50 points? Elaborate a graph. d) Suppose the grading method changes, the new method is now the simple average of both midterm and final test, what would be the utility function of Melquiades? What would be the best combination?
12) Melquiades is worried about his grades from the microeconomics course, according to the rules for grading, the final grade is obtained as the minimum between the grade for the midterm test (x) and the final test (y). The utility function of Melquiades will depend on the grades obtained from those two tests Now, Melquiades has researched that the average student needs to study 24 minutes to obtain an additional point in each test (tests are graded from 0 to 100) a) If Melquiades has 20 hours to study for both tests (x and y), how much time would he employ for each test? Figure out the grade that Melquiades will obtain in each test and his final grade in microeconomics. Elaborate a graph. b) How much additional study time would Melquiades require to increase his final grade by 10 points. Elaborate a graph. c) Suppose the difficulty of the final test increases in such a way that now each additional point would require 26 minutes of study. What would be the total cost (in minutes) necessary to obtain a final grade of 50 points? Elaborate a graph. d) Suppose the grading method changes, the new method is now the simple average of both midterm and final test, what would be the utility function of Melquiades? What would be the best combination?
Chapter3: Preferences And Utility
Section: Chapter Questions
Problem 3.9P
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Transcribed Image Text:12) Melquiades is worried about his grades from the microeconomics course, according to the
rules for grading, the final grade is obtained as the minimum between the grade for the midterm
test (x) and the final test (y).
The utility function of Melquiades will depend on the grades obtained from those two tests
Now, Melquiades has researched that the average student needs to study 24 minutes
an additional point in each test (tests are graded from 0 to 100)
obtain
a) If Melquiades has 20 hours to study for both tests (x and y), how much time would he
employ for each test? Figure out the grade that Melquiades will obtain in each test and
his final grade in microeconomics. Elaborate a graph.
b) How much additional study time would Melquiades require to increase his final grade by
10 points. Elaborate a graph.
c) Suppose the difficulty of the final test increases in such a way that now each additional
point would require 26 minutes of study. What would be the total cost (in minutes)
necessary to obtain a final grade of 50 points? Elaborate a graph.
d) Suppose the grading method changes, the new method is now the simple average of
both midterm and final test, what would be the utility function of Melquiades? What
would be the best combination?
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