Q: 4 The graph shows the total utility (TU) obtained by a consumer from eating biscuits over a period…
A: Utility: - Utility is the satisfaction derived by any consumer by consuming a good or service.
Q: The Law of Diminishing Utility: For example, I consume too many apples. Until I eat the fifth one, I…
A: The law of diminishing marginal utility basically refers that as consumption increases, the marginal…
Q: Why there are strong similarities between the optimizing decisions made by firms and those made by…
A: Solution: Consumers Behavior: Consumers behavior means how a consumer behaves at the time of…
Q: e following table lists the utility that Steve receives from consuming oranges at $0.50 apiece. hat…
A: Marginal utility refers to the change in the total utility when one additional unit of commodity is…
Q: Suppose the graph below shows Gilligan's daily production possibilities curve for coconuts and fish.…
A: As per graph , we can say that 4 lbs of fish will be produced everyday along with 3 lbs of coconut.
Q: Suppose that Elif spends her income on shoes and outfits. The price of a shoe is 100/unit and the…
A: Utility is maximized when (MUs/Ps) = (MUo/Po) where S: Shoes and O: Outfit, and MU = Change in TU /…
Q: 4) Ok a given day during study leave period for the final examination student Spends revising course…
A: We are going to answer the two variable optimization technique to answer the question.
Q: 2. The table below presents Kent's marginal utility per dollar for books and pizzas. Books cost $16…
A: Price of book=$16 Price of pizza=$8
Q: 2. John likes Coca-Cola. After consuming one Coke, John has a total utility of 10 utils. After two…
A: Solving part 2 as per asking
Q: 6. Suppose you are running a 5 mile race. There is a water station. It will take you time to drink…
A: The equation for time saved is 30-10b where b represents the number of bottles consumed.
Q: XERCISE 1 Below is a production possibilities table for consumer goods (Food) and capital goods…
A: “Since you have posted a question with multiple sub-parts, we will solve the first three subparts…
Q: a. Complete the following table. Units TFC TVC TC AFC AVC AC MC 0 24 0 1 24 28 2 24 54 3 24 75 4 24…
A: The total cost of production is the aggregate of two separate components namely the fixed costs and…
Q: The following is Ray Windmill White’s total utility schedule for pairs of boxing gloves. Calculate…
A: Utility refers to the inherent value or satisfaction received by the customer after consuming the…
Q: Suppose Malcolm has determined that his marginal utility schedules for used CDs paperback books (PB)…
A: The utility is maximized where marginal utilities derived from per dollar are same across the goods.…
Q: MN 00 CO IN %24 Question 25 of 60 > (Table) Based on the table, assume that a bag of chips costs $3.…
A: Bottled Water Bags of chips Q TU Q TU 0 0 0 0 1 40 1 60 2 70 2 90 3 90 3 105 4 100 4 114…
Q: 4. Suppose that a decent breakfast at the SCSU cafeteria costs $4. You always eat breakfast at SCSU,…
A:
Q: 1. Distinguish between Microeconomics and Macroeconomics with their obiectives
A: Micro-economics studies economic issues or economic problems at the level of an individual. Whereas…
Q: 5. Assume that a consumer has two goods to consume: medical care services (M) and all other goods…
A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: A student spends 270 HUF on books (x) and renting bikes (y). The price of an average book is 16 HUF…
A: I=270 HUF Price of book= 16HUF Price of bike= 17 HUF U(x,y)=x0.4y0.6
Q: Cho is a skilled toy maker who is able to produce both boats and puzzles. She has 8 hours a day to…
A: Opportunity cost is the cost of second best alternative foregone. It is also sometimes known as…
Q: What are the benefits to make rational decision?
A: Rational Decision refers to a step-wise process for making a choice between the two or more…
Q: Graph the following data Quantity marginal utility 1 153 2 112…
A: Marginal utility is the additional utility derived from consuming one extra unit of the output. The…
Q: A consumer decides not to buy a VCR when her income is $20,000. However, when her income rises to…
A:
Q: 1. Suppose you are considering to make a decent holiday dinner. In this year, to be creative, you…
A: Given The total utility of Salmon is describe by the function U1400Q .......(1) The total…
Q: 6. The table below presents Kent's marginal utility per dollar for books and pizzas. Books cost $16…
A: ANSWER Let number of books purchased be x and number of pizzas purchased be y. According to equi…
Q: The vending machine in Katherine's office building offers cans of pop and candies. Katherine's…
A: Answer: Given, Utility function: U=3PC Price of pop PP=$1Price of Candy PC=$0.5Total income M=$10…
Q: This is a question about marginal analysis where one dependent variable is determined by two…
A: Utility is the satisfaction attained by the consumers. The aim of the consumers is to maximize the…
Q: The following table shows Ellie's utility from consuming slices of cake and cans of 7- Up. 5-…
A: MUs is Marginal Utility from Slice Ps is Price of a Slice MUc is Marginal Utility from Can Pc is…
Q: 1. Muhammad enjoys going to the aquarium (x) and playing basketball (y). His preferences on x and y…
A:
Q: 64. When Marginal Utility is zero, Total Utility is A. O Minimum B. O Maximum C. O Law of return D.…
A: The satisfaction that is being derived by consumers from the consumption of service or goods is…
Q: (Table) Refer to the table which shows the total utility and marginal utility for ice cream cone…
A: Total Utility (TU) is the final or summation of all utilities that consumers gain by consuming…
Q: 1. Doreen is looking for a flat to rent in Brighton. a. In choosing a flat, she cares about two…
A: Given information U=min(X,2Y) X= Number of bedrooms Y=Number of bathrooms Total income=1000 Price of…
Q: Matthew Hamming is stranded on an island. He has decided that he will spend exactly 10 hours a day…
A: Utility function The utility function is a study that measures the combination of two goods. under…
Q: Write the necessary condition (NC) for the consumer’s optimization problem and illustrate it by…
A: a)
Q: 8. Suppose that you have a big test on Monday and you plan to spend the weekend studying. On…
A: There is a big trade-off between the given two choices, the big test on Monday and the water park on…
Q: Koonson Crusoe spends 4 hours a day catchine fish and picking coconuts. He can always caen per hour…
A: here we calculate the given by following method as follow;
Q: 4. What are the three conditions that must exist when there is allocative efficiency? Allocative…
A: Allocative efficiency means when the goods and services in an economy are optimally distributed…
Q: 1. Suppose you are considering to make a decent holiday dinner. In this year, to be creative, you…
A: Total utility is the amount of all utils you derive by consuming all goods. And marginal utility…
Q: 2. The table below presents Kent's marginal utility per dollar for books and pizzas. Books cost $16…
A: Law of Equi -Marginal utility: It is the Law that states that ratio of the marginal utility to the…
Q: 1. Suppose you won $15 on a lotto ticket at the local 7-Eleven and decided to spend all the winnings…
A: It is given that,Total income (M) earned by winning lottery is $15.M can be spend on consuming two…
Q: 1. The rules regarding economic decision maker behavior are: Group of answer choices A: Consumers…
A: A decision-making process centred on choosing decisions that result in the highest level of profit…
Q: 11. What is the principal objective of a rational consumer? To avoid purchasing the most expensive…
A: A rational consumer is the one who acts in the economy in their own self utilizing the commodity…
Q: If you are told that Paul's total utility associated with watching 7 movies is 315 utils, what can…
A: Marginal utility is additional utility gained by consumption of one more good.
Q: Question attached
A: The budget line shows the combination of two goods which a consumer can afford to purchase. The…
Q: 5. The principle of diminishing marginal utility means that as you spend more and more hours…
A: Answer for Q#25 According to the law of diminishing marginal utility, when more and more units of a…
Step by step
Solved in 2 steps
- Give typing answer with explanation and conclusion Consider a good or service where consumers pay more than its actual valuation (for eg, products with markup prices at retail significantly higher than their cost: greetings cards, bottled water, stock price, movie theatre popcorn/candy). Based on the irrational decision-making and marginal analysis, explain why such irrational decision-making could take place in this situation.1. Describe economics as the study of "choice" and "scarcity".2. Which words best complete the following sentence ? A rational decision maker always chooses the option for which marginal benefit is _______ marginal cost?
- 29. A consumer is trying to decide between purchasing one smoothie or one cappuccino. They get 30 utils of enjoyment from cappuccino and the cappuccino cost $5 and they get 40 utils of enjoyment from the smoothie. Below what price will they decide to buy the smoothie? This cannot be solved unless we are given the price of the smoothie. $8.00 $6.00 $6.67Question 1.B Complete the following table and illustrate by graph following variables (TFC, TVC, TC, MC) Q TFC TVC TC MC ATFC ATVC ATC 0 20 0 1 35 2 38 3 40 4 55# 10 An example of efficiency in economics is Select one: Satisfying wants with as many resources as possible Simplifying reality in economic models as much as possible Minimising outputs given inputs Maximising outputs given inputs
- Economic theory assumes consumers are rational. Still, in practice, we see a lot of irrational behavior. Give an example(s) of irrational economic decision-making.Graph the following dataQuantity marginal utility1 153 2 112 3 77 4 48 5 25 6 8 7 -3 8 -8For questions 15-16 make use of the following information and table. Suppose that Elif spends her income on shoes and outfits. The price of a shoe is 100/unit and the price of an outfit is 200/unit. Q shoes outfits total utility marginal util. MU/Ps total utility marginal util. MU/Po 1 1000 1800 2 1700 3000 3 2000 4000 4 2200 4600 15) What is the quantity of shoes and outfits that maximizes Elif’s utility? a) 3 shoes and 3 outfits b) 4 shoes and 2 outfits c) 3 shoes and 4 outfits d) 4 shoes and 3 outfits
- 13. A layperson says that a proposed government project simplycosts too much and therefore shouldn’t be undertaken.How might an economist’s evaluation be different?14. Economists say that individuals make decisions at themargin. What does this mean?15. How would an economist define the efficient amount oftime spent playing tennis?16. Ivan stops studying before the point at which his marginalbenefits of studying equal his marginal costs. Is IvanAnastasia, Emma, and Greta are deciding what to do on a weekend getaway. They each suggest a first, second, and third choice and then vote on the options. Table 18.2 shows their first, second, and third choice preferences. Explain why they will have a hard time teaching a decision. Does the group prefer mountain biking to canoeing? What about canoeing compared to the beach? What about the beach compared to the original choice of mountain biking?Explain why individuals make Choices that are directly on the budget constraint, rather than inside the budget constraint DI outside it.
