Please help with all or what you can I know there are a couple parts to it. Just really need some assistance. 5. The following tables illustrate Jane's utilities from watching first-rùnmovies in a theater and from renting movies from a video store. Supposethat she has a monthly entertainment budget of $36 each movie in a theatercosts $6, and each video rental costs $3.Per Dollar Spent-Per Dollar Spent-# ofMovies TUMovies-TheaterTotal Utility - Marginal UtilityMUMovies-Theater# of Movies- Total Utility - Marginal Utility- MUgentaMoviesMUgentalMovies /MUMovies-TheaterPMovies-TheaterRentalTUgental-MoviesPaentalMovies120025029022953703335444043705500400550420590a. Obtain the marginal utilities and the marginal utility per dollar spend in eachgood. Use the table to report your answers.b. Do Jane's preferences obey the law of diminishing marginal utility for moviesin the theater? for video movies? Yes/no. How do you know?c. How many movies and how many rental movies will Jane choose such shemaximizes her utility? How do you know?d. Suppose the prices of both types of movies drop to $1 while Jane's

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5. The following tables illustrate Jane's utilities from watching first-rùn movies in a theater and from renting movies from a video store. Suppose that she has a monthly entertainment budget of $36 each movie in a theater costs $6, and each video rental costs $3. Per Dollar Spent- Total Utility - Marginal Utility - MUMovies-Theater / Per Dollar Spent- # of # of Movies Total Utility - Marginal Utility MUgentaMovies/ Movies TUMovies-Theater MUMovies-Theater PMovies-Theater Rental TUsental-Movies - MUgentalMovies PaentalMovies 1 200 250 2 290 295 3 370 335 4 440 4 370 500 400 6 550 6 420 590 a. Obtain the marginal utilities and the marginal utility per dollar spend in each good. Use the table to report your answers. b. Do Jane's preferences obey the law of diminishing marginal utility for movies in the theater? for video movies? Yes/no. How do you know? c. How many movies and how many rental movies will Jane choose such she maximizes her utility? How do you know? d. Suppose the prices of both types of movies drop to $1 while Jane's

5. The following tables illustrate Jane's utilities from watching first-rùn movies in a theater and from renting movies from a video store. Suppose that she has a monthly entertainment budget of $36 each movie in a theater costs $6, and each video rental costs $3. Per Dollar Spent- Total Utility - Marginal Utility - MUMovies-Theater / Per Dollar Spent- # of # of Movies Total Utility - Marginal Utility MUgentaMovies/ Movies TUMovies-Theater MUMovies-Theater PMovies-Theater Rental TUsental-Movies - MUgentalMovies PaentalMovies 1 200 250 2 290 295 3 370 335 4 440 4 370 500 400 6 550 6 420 590 a. Obtain the marginal utilities and the marginal utility per dollar spend in each good. Use the table to report your answers. b. Do Jane's preferences obey the law of diminishing marginal utility for movies in the theater? for video movies? Yes/no. How do you know? c. How many movies and how many rental movies will Jane choose such she maximizes her utility? How do you know? d. Suppose the prices of both types of movies drop to $1 while Jane's

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter6: Consumer Choice And Demand

Section: Chapter Questions

Problem 2.4P

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Similar questions

Take Jeremys total utility information in Exercise 6.1, and use the marginal utility approach to confirm the choice of phone minutes and round trips that maximize Jeremys utility.
Would you expect total utility to rise or fall with additional consumption of a good? Why?
Who determines how much utility an individual will receive from consuming a good?
Praxilla, who lived in ancient Greece, derives utility from reading poems and from eating cucumbers. Praxilla gets 30 units of marginal utility from her first poem 27 units of marginal utility from her second poem 24 units of marginal utility from her third poem, and so on, with marginal utility declining by three units for each additional poem. Praxilla gets six units of marginal utility for each of her next three cucumbers consumed, five units of marginal utility for each of her next three cucumbers consumed, four units of marginal utility for each of the following three cucumbers consumed, and so on, with marginal utility declining by one for every three cucumber consumed. A poem costs three bronze coins hut a cucumber costs only one bronze coin. Praxilla has 18 bronze coins. Sketch Praxillas budget set between poems and cucumbers, placing poems on the vertical axis and cucumbers on the horizontal axis. Start off with the choice of zero poems and 18 cucumbers, and calculate the changes in marginal utility of moving along the budget line to the next choice of one poem and 15 cucumbers. Using this step-by-step process based on marginal utility, create a table and identify Praxillas utilityâ€”maximizing choice. Compare the marginal utility of the two goods and the relative prices at the optimal choice to see if the expected relationship holds. Hint: Label the table columns: 1) Choice, 2} Marginal Gain from More Poems, 3) Marginal Loss from Fewer Cucumbers, 4) Overall Gain or Loss, 5) Is the previous choice Optimal? Label the table rows: 1) 0 Poems and 18 Cucumbers, 2) 1 Poem and 15 cucumbers, 3) 2 Poems and 12 cucumbers, 4) 3 Poems and 9 Cucumbers, 5) 4 Poems and 6 cucumbers 6) 5 Poems and 3 Cucumbers, 7) 6 Poems and 0 Cucumbers.
Is it possible for total utility to increase while marginal utility diminishes? Explain.