QUESTION 6: 1 POINT Marginal Utility per Dollar |Quantity of Total Marginal Product A Utility Marginal Utility per Quantity of Total Marginal Product B Utility Marginal Utility per Utility Utility Dollar Dollar 1 30 30 ? 1 34 34 57 27 ? 2 66 32 ? 3 81 24 ? 3 96 30 ? 4 102 21 ? 4 124 28 ? 5 120 18 5 150 26 135 15 6. 174 24 ? 7 147 12 ? 7 196 22 ? Your buddy Amanda wants your advice. She presents you with the utility schedule above and wants to know how many units of Product B she should purchase to maximize her utility. She tells you the price of Product A is $6 and the price of Product B is $10. Amanda informs you she only wants to spend $60. How many units of Product B do you tell Amanda to purchase?

QUESTION 6: 1 POINT Marginal Utility per Dollar |Quantity of Total Marginal Product A Utility Marginal Utility per Quantity of Total Marginal Product B Utility Marginal Utility per Utility Utility Dollar Dollar 1 30 30 ? 1 34 34 57 27 ? 2 66 32 ? 3 81 24 ? 3 96 30 ? 4 102 21 ? 4 124 28 ? 5 120 18 5 150 26 135 15 6. 174 24 ? 7 147 12 ? 7 196 22 ? Your buddy Amanda wants your advice. She presents you with the utility schedule above and wants to know how many units of Product B she should purchase to maximize her utility. She tells you the price of Product A is $6 and the price of Product B is $10. Amanda informs you she only wants to spend $60. How many units of Product B do you tell Amanda to purchase?

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Consumer Choice Theory

Section: Chapter Questions

Problem 3SQP

See similar textbooks

Similar questions

Wherein:TU = Total Utilityf= is a function ofMU = Marginal UtilityO = units of consumptionA= infinitesimal change EMV= Expected Monetary Value
Total utility (utils) 0 80 120 148 160 155 Quantity consumed per day 0 1 2 3 4 5 As shown in Exhibit above, the marginal utility for the second unit consumed is
Number Consumed Total Utility Marginal Utility 0 0 NA 1 9 9 2 19 10 3 27 8 4 35 9 5 42 7 6 42 0 7 40 -2 When does diminishing marginal utility begin to set in?
33. Suppose MRSx,y = MUx/MUy = 0.1(a) If the consumer substitutes 10 units of X for one unit of Y, then the utility remainsunchanged(b) Regardless of prices, the consumer will only consume Y(c) If the consumer substitutes 1 unit of Y for 0.1 unit of X, then the utility remainsunchanged(d) Regardless of prices, the consumer will only consume X
1. Does a dollar given to a rich person raise the rich person’s total utility more than a dollar given to a poor person raises the poor person’s total utility? 2. This week you have gone to two parties. Assume the total utility you gained from these parties is 100 utils. Then you go to a third party, and your total utility rises to 110 utils. What is the marginal utility of the third party attended per week? Given the law of diminishing marginal utility, what will happen to total utility and marginal utility when you go to a third party this week? 3. Suppose you consume 3 pounds of beef and 5 pounds of pork per month. The price of beef is $1.50 per pound, and pork is $2.00 per pound. Assuming you have studied economics and achieved consumer equilibrium, what is the ratio of the marginal utility of beef for the marginal utility of pork? 4. Explain the relationship between the law of diminishing marginal utility and the law of demand. 5. Using the marginal utility…
Mylie’s total utility from singing the same song over and over is 50 utils after one repetition, 90 utils after two repetitions, 70 utils after three repetitions, 20 utils after four repetitions, −50 utils after five repetitions, and −200 utils after six repetitions. Write down her marginal utility for each repetition. Once Mylie’s total utility begins to decrease, does each additional singing of the song hurt more than the previous one or less than the previous one?
When utility function U(q1, q2)=min{ 34.6 q1, 17 q2} and q1= 33 and q2= 60 are given, find utility level consumer gains?
Given an individual’s current consumption patterns, we know that the person is consuming in such a manner that he is maximizing his satisfaction. Given a decrease in the price of one of the goods he normally purchases, what will happen to the consumer’s total satisfaction and to the marginal utilities connected with the consumption of this particular good. a) His overall satisfaction will increase, but his satisfaction from the last unit consumed of the good with a decreased price will decrease. b) His overall satisfaction will decrease and his satisfaction from the last unit consumed of the good with a decreased price will decrease. c) His overall satisfaction will increase and his satisfaction from the last unit consumed of the good with a decreased price will increase. d) His overall satisfaction will decrease and his satisfaction from the last unit consumed of the good with a decreased price will increase. e) We cannot tell about the changes in his total utility or his marginal…
Michelle has $7 to spend on makeup and clothes and wants to maximize her utility on her purchase. Based on the data in the table, how much makeup and clothes should Michelle purchase to maximize her utility. Show all working Makeup= $1 Clothes = $0.50Quantity Total Utility Quantity Total Utility1 28 1 122 52 2 223 72 3 304 88 4 365 100 5 406 108 6 427 112 7 428 112 8 40
4. Show how to construct the reference dependent utility function for two friends Kate and Mary whose gains and losses are listed as follows : Kate's net worth is $ 4.5 million ( decreased from $ 5.5 to $ 4.5 million ) Mary's net worth $ 3.2 million ( increased from $ 3 to $ 3.2 million ) ( First determine the reference point ( use a parameter ) and then derive reference utility function for each ) .
The primary goal of very consumer is to maximize satisfaction. Explain, how a consumer achievesequilibrium using:a) Indifference curve analysisb) Marginal Utility theory
Ann can finish a project either this week or next week. The delayed rewards are 10 in either case. (The project can be done only once or not at all).Next week is busy and the cost of finishing the project are lower this week. The immediate costs are 4 this week and 6 next week. Ann has a quasi-hyperbolic utility withδ= 1 andβ <1. Imagine that Anndoes not finish the project this week. Then she should finish it next week (A) ifβ >0.6; (B) ifβ >0.4; (C) only ifβ= 1; (D) for anyβ.11. Suppose that β= 0.5 and Ann correctly anticipates her choice next week. Then she should finish the project (A) this week; (B) next week; (C) never; (D) not enough information. can you help me with the bolded question? thank you!