Suppose that you are given $40,000 to split between two people, Jane and Fred. The income and marginal utility for each of them is shown in the following table. Amount to Jane Amount to Fred MU of Jane's Last Dollar Spent MU of Fred's Last Dollar Spent $ 5,000 $ 35,000 $ 100 $ 75 $ 8,000 $ 32,000 $ 80 $ 80 $ 11,000 $ 29,000 $ 60 $ 85 $ 14,000 $ 26,000 $ 40 $ 90 $ 17,000 $ 23,000 $ 20 $ 95 Instructions: Enter your answers as a whole number. If you want to maximize their combined utility, how much of the $40,000 should go to Jane? How much should go to Fred? Amount to Jane = S Amount to Fred = S
Suppose that you are given $40,000 to split between two people, Jane and Fred. The income and marginal utility for each of them is shown in the following table. Amount to Jane Amount to Fred MU of Jane's Last Dollar Spent MU of Fred's Last Dollar Spent $ 5,000 $ 35,000 $ 100 $ 75 $ 8,000 $ 32,000 $ 80 $ 80 $ 11,000 $ 29,000 $ 60 $ 85 $ 14,000 $ 26,000 $ 40 $ 90 $ 17,000 $ 23,000 $ 20 $ 95 Instructions: Enter your answers as a whole number. If you want to maximize their combined utility, how much of the $40,000 should go to Jane? How much should go to Fred? Amount to Jane = S Amount to Fred = S
Chapter10: Consumer Choice Theory
Section: Chapter Questions
Problem 9P
Related questions
Question
help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no
![Suppose that you are given $40,000 to split between
two people, Jane and Fred. The income and
marginal utility for each of them is shown in the
following table.
Amount to Jane Amount to Fred MU of Jane's Last
Dollar Spent MU of Fred's Last Dollar Spent
$ 5,000 $ 35,000 $ 100 $ 75
$ 8,000 $ 32,000 $ 80 $ 80
$ 11,000 $ 29,000 $ 60 $ 85
$ 14,000 $ 26,000 $ 40 $ 90
$ 17,000 $ 23,000 $ 20 $ 95
Instructions: Enter your answers as a whole number.
If you want to maximize their combined utility, how
much of the $40,000 should go to Jane? How much
should go to Fred?
Amount to Jane
= S
Amount to Fred
=
S](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc2d38bd7-ac55-4e73-9f5e-098823e8886f%2Fa7c4df9b-359b-423b-9726-4bcbafb8b2f6%2Fvtm6kom_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Suppose that you are given $40,000 to split between
two people, Jane and Fred. The income and
marginal utility for each of them is shown in the
following table.
Amount to Jane Amount to Fred MU of Jane's Last
Dollar Spent MU of Fred's Last Dollar Spent
$ 5,000 $ 35,000 $ 100 $ 75
$ 8,000 $ 32,000 $ 80 $ 80
$ 11,000 $ 29,000 $ 60 $ 85
$ 14,000 $ 26,000 $ 40 $ 90
$ 17,000 $ 23,000 $ 20 $ 95
Instructions: Enter your answers as a whole number.
If you want to maximize their combined utility, how
much of the $40,000 should go to Jane? How much
should go to Fred?
Amount to Jane
= S
Amount to Fred
=
S
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