The graph below shows the utility function of Mr. Ahmer for herbal tea. Given the information below find the level of marginal utility he attained from the third cup of tea. a. 10 b. 50 c. Given information is insufficient to find the answer d. 0
Q: What are the assumptions of the law of the diminishing marginal utility in economics
A: The law of diminishing marginal utility states that as an additional unit is consumed, the marginal…
Q: Consider a utility function: U (F,C) = FC so MU_F = C and MU_C = F Suppose as Case 1, Total income…
A: “Since you have posted a question with multiple sub-parts, we will solve the first three subparts…
Q: The table below contains information about the total utility Jerry gains from coffee and pastries he…
A: a) Number of Coffee Total Utility From Coffee Marginal Utility From Coffee 1 1.50 2 2.70…
Q: When utility function U(q1, q2)=min{ 25.6 q1, 12.5 q2} and q1= 99 and q2= 198 are given, find…
A: The Utility function can be represented by U(q1, q2)=min{ 25.6 q1, 12.5 q2} In general, if…
Q: Five consumers have the following marginal utility of apples and pears: The price of an apple is $1,…
A: Utility refers to satisfaction. The aim of a typical rational consumer is to maximize the utility…
Q: Suppose Pizza (P) and Hamburgers (H) are perfect substitutes to Kate. Two slices of Pizza always…
A: Given Pizza (P) and Hamburgers (H) are perfect substitute and utility from 2 slices of Pizza =…
Q: The table below shows the total utility and marginal utility for ice cream consumption. The value…
A: Utility refers to the satisfaction derived by the consumer from the consumption of a good or…
Q: A consumer’s preferences over two goods x and y are given by the utility function U(x, y) = min{αx,…
A: Consumption: It refers to the intake of goods and services in the economy. The more the consumption…
Q: given the utility function U=150X+40X2-X3, derive average and marginal utility functions, Find the…
A: Answer: Given, Utility function: U=150X+40X2-X3 Average utility function (AUF): To find the average…
Q: QUESTION 4 Linguini and Colette consume only éclair (x,) and profiterole (x,). Linguini has utility…
A: "Since you have posted multiple sub-part questions, I can only answer the first 3 parts, the rest…
Q: Mr. Abdulah enjoys Coffee (K) and Tea (T), with the utility function U (K, T) = 3K + 4T. Question: -…
A: This is a perfect substitute case, as tea and coffee both are substitutes for each other and can…
Q: The table below contains information about the total utility Jerry gains from coffee and pastries he…
A: Answer: Introduction: Marginal utility: marginal utility refers to the additional utility derived…
Q: What are the assumptions of cardinal utility theory? Explain the law of diminishing marginal utility…
A: The Cardinal Utility approach is supported by neo-classical economists, who assume that utility is…
Q: u(x1, x2) = In x1+ x2. и(х1, хэ) — тin (х1, хэ). и(х, хә) — х1+ х2. x1+ x2. =
A: Answer - Need to find- Engel Curve of respective utility function 1. U(x1,x2) = lnx1 + x2 Answer -…
Q: Define law of diminishing marginal utility concept with example
A: The basic law of consumption is 'law of diminishing marginal utility'. The marginal utility is the…
Q: Use the Law of Diminishing Marginal Utility to discuss why Market Demand has to have a downward…
A: Utility is the satisfaction derive by consuming goods and services. And due to law of diminishing…
Q: Donna and Jim are two consumers purchasing strawberries and chocolates. Jim’s utility function is U…
A: The utility function for Jim is given as follows: The income of Jim is given as $100. Thus; The…
Q: .Enumerate at least five interpretations of the graph of the Total Utility curve 2.Enumerate at…
A: Total Utility Curve: Total utility curve is the combination of consumer demand theory and its…
Q: Bridget's preferences for apples( X) and bananas(Y) can be represented by the utility function…
A:
Q: It is known that the indifference curve is convex. What does this tell you about the relationship…
A: Hello, thank you for the question. Since there are multiple questions posted here, only the first…
Q: What is law on diminishing marginal utility
A: The additional satisfaction a shopper gets from possessing one further unit of an item or service is…
Q: Sketch a typical downward sloping demand curve for bagels. What must be true for Bill to purchase…
A: Optimal condition Marginal Utility = Price Bill will purchase additional bagels only when marginal…
Q: briefly discuss and explain the two major approches for the analysis of utility
A: In economics, utility is a term referring to the overall satisfaction obtained from consuming a good…
Q: Consumer utility function is, U(XY) = X 75 Y 0.5. The price of X good 2 AZN and Y good 4 AZN. If…
A: A consumer maximizes utility by consuming at the point where slope of indifference curve given by…
Q: Pankti consumes two goods, x and y. Her utility function is given by U(x, y) = ln(xy). (a) Are…
A: If preferences are homothetic, a proportional increase in x and y would result in no change in…
Q: Consider a utility function: U (F,C) = FC so MU_F = C and MU_C = F Suppose as Case 1, Total income…
A: Given, U (F,C) = FC MUF= C MUC = F Income (I) = $100 Price of food (PF) = $2 Price of cloth (PC) =…
Q: Assume that Raymond has $ 37.00 to spend on pretzels and beer. The price of pretzels is $3.00 and…
A: Under the utility approach, the consumers might reach equilibrium(or maximizes their utility) for…
Q: At her current level of consumption, jess gets half as much marginal utility from an aditional bagel…
A: Meaning of Law of Variable Proportions: The term law of variable proportions refers to the…
Q: The utility function U = f(x, y) is a measure of the utility (or satisfaction) derived by a person…
A: (Note: Since the question has many sub-parts (a-d), the first three sub-parts (a-c) have been…
Q: ) John consumes two goods, X and Y. The marginal utility of X and the marginal utility of Y satisfy…
A: Th the answer is as follows:-
Q: A KU student maximizes his sporting utility by playing Golf (G) and Tennis (T). His function is…
A: The maximum utility that a person can possibly experience given a certain price, quantity, and…
Q: The law of diminishing marginal utility states that?
A: the law of diminishing marginal utility was given by a German Economist Gossen, which is why it is…
Q: Assume that a person’s utility depends on two products, x and y. The utility function is given by…
A: Marginal utility of x and y can be calculated from the above utility function just by differentiated…
Q: Assuming that seafood is your favorite food. Would the law of diminishing marginal utility apply to…
A: The law of diminishing marginal utility states that, when the consumer consumes a commodity without…
Q: Use the following table to answer the question be Marginal Utility Units Total Consumed Utility W 20
A: The Marginal Utility(MU) is the change in the utility after the addition of one more unit of a good.…
Q: What isn the law of diminishing marginal utility? Give an example to illustrate
A: Marginal utility implies extra utility obtained from the extra unit of a product.
Q: Consider the following utility function и(х, у) — Зх + 4у a. Is the utility function homothetic?…
A: The utility function measures the welfare or satisfaction of a client as an operate of the…
Q: Utility Maximization A consumer faces income constraints and has CES preferences of the following…
A:
Q: Explain through the optimal choice of a person how their individual demand function arises. Use an…
A: Demand Demand is the amount of a commodity that consumers are willing to purchase at various…
Q: 1) Ambrose has the utility function U(x,x:) = 4x: + xX:. (X:: nuts, x:: berries). a) If Ambrose is…
A: The utility is the total satisfaction received when a good or product is consumed. The indifference…
Q: utility.
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Next question In a year, Marco buys 10 sweaters at $60 each and pays $40 for 10,000 gallons of tap…
A: Marginal utility refers to change in total utility with respect to change in output. It the…
Q: Assume that Raymond has $ 37.00 to spend on pretzels and beer. The price of pretzels is $3.00 and…
A: Under the utility approach, the consumers might reach equilibrium(or maximizes his utility) for two…
Q: In 2005, suppose a typical U.S. owner of a home theater (a television and a DVD player) bought 8…
A: Here we have:- Cobb-Douglas utility function=Uq1,q2=q10.2q20.8 Here Barbara spent spent $600 so, the…
Q: Consider a utility function: U (F,C) = FC so MU_F = C and MU_C = F Suppose as Case 1, Total income…
A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…
Q: Does a dollar given to a rich person raise the rich person's total utility more than a dollar given…
A: Marginal utility of money: - the marginal utility of money is the increase in the total utility by…
Q: Consider a utility function: U (F,C) = FC so MU_F = C and MU_C = F Suppose as Case 1, Total income…
A: Given, U (F,C) = FC MUF= C MUC = F Income (I) = $100 Price of food (PF) = $2 Price of cloth (PC) =…
Q: Imagine, we are in ancient Greece. Praxilla lives in Athens and derives utility from reading poems…
A: The additional satisfaction a consumer obtains from one more unit of a product or service is…
The graph below shows the utility function of Mr. Ahmer for herbal tea. Given the information below find the level of
a. |
10 |
|
b. |
50 |
|
c. |
Given information is insufficient to find the answer |
|
d. |
0 |
Step by step
Solved in 2 steps
- What is the impact of covid 19 on socioeconomic? List down 10 points with an explanationPisa Pizza, a seller of frozen pizza, is considering introducting a healthier version of its pizza that will be low in cholesterol and contain no trans fats. The firm expects that sales of new pizza will be $20 million per year. While many of these sales will be to new customers, Pisa Pizza estimaes that 40% will come from customers who switch to the new, healthier pizzai nstead of buying the original version. a) Assume cusotmer will spend the same amount on either version. What level of incremental sales is associated with introducing the new pizza? b) Suppose that 50% of hte cusomters who will switch from Pisa Pizza's orignial pizza to its healthier pizza will switch to another brand if Pisa PIzza does not introduce a healthier pizza. What level of incremental sales is associated with introducing the new pizza in this case?An analyst for a major apparel company estimates that the demand for its raincoats is given by ln Qdx = 10 − 1.2 ln Px + 3 ln R − 2 ln Ay where R denotes the daily amount of rainfall and Ay represents the level of advertising on good Y. What would be the impact on demand of a 10 percent increase in the daily amount of rainfall? What would be the impact of a 10 percent reduction in the amount of advertising directed toward good Y? Can you think of a good that might be good Y in this example?
- Budi and Ahmad are stranded on a remote island. Each had a few cans of bacon (D) and a few packs of macaroni cheese (M). Budi has quite flexible tastes and has a UB satisfaction function = 4D + 3M. Ahmad is a very picky person and will only eat smoked meat and cheese macaroni with a combination of 1 can of smoked meat and 2 packs of macaroni cheese. Ahmad's level of satisfaction is UA=min(D,M/2). There are only 100 cans of bacon and 200 packs of macaroni cheese. Questions: a. Draw an Edgeworth Box diagram illustrating the possible trade-offs that occur under these conditions. Determine the possible exchange rate in equilibrium. b. Suppose Ahmad has 40 cans of bacon and 80 packs of macaroni cheese. Determine the equilibrium that will occur. c. Suppose Ahmad has 60 cans of bacon and 80 packs of macaroni cheese. Determine the equilibrium that will occur. d. Suppose Ahmad, who is stronger than Budi, decides not to follow the agreed exchange rules. Determine the equilibrium that will occur.How government can overcome unemployment issue during covid-19 pandemic.Need asap... My husband is sick of me drinking Coke every day. He tells me that if I give up drinking it for 6 months, he'll buy me a new car. I want a new car, so I agree to the deal, and I don't drink any Coke during that time. At the end of the six months, I tell him it's time to go get my new car. He balks and says no, explaining that not drinking Coke has actually been beneficial for me, so there's no consideration for the deal. Is he right? Explain.
- In an article on how exercise improves health, the New York Times reported on an observational study that found that each hour spent running added two hours to a person's life expectancy [Brody. 20061 A week later, a letter to the editor questioned whether the results really proved anything about the impact of exercise on health, and suggested that the study could just as well be showing that "those with a strong heart and good health are otherwise more likely to enjoy running and do it more regularly." How does this challenge to the exercise study relate to the problems faced by economists trying to &slims the causal effects of economic policy? How could you design an experimental study to estimate the impact of running on life expectancy?To produce one more yard of X , you need 1/MPLCx hours of labor. true or falseTen years ago, the town of Easton decided to increase its annual spending on education so that its high school graduates would be able to earn higher wages. Now Easton has asked you to evaluate the effectiveness of the spending increase. Their data show that before the spending increase, the average annual salary of recent high school graduates was $25,000 and that now that average salary has risen to $28,500. Fortunately for your analysis, a neighboring community (Allentown) did not change its annual spending on education. Ten years ago, recent Allentown high school graduates earned an average of $22,500, and now that average is $23,750. (a) Use a difference-in-differences estimator to determine whether Easton’s spending increase caused the wages of their high school graduates to increase. (b) What underlying assumption do you have to make in order for your estimate to be valid? What might cause your underlying assumption to be invalid? (c) This data set contains only two…
- An overheated economy is most likely to result in:Scenario B: The nonprofit recently engaged in a campaign to encourage elementary school children to read more. A previous study found that children in your community read in their free time for 48 minutes per day on average. You would like to find out whether the time spent reading among elementary school students increased after the campaign.Because one’s productivity in the workplace is likely to be affected by one’s health, investment in health could increase earnings to the extent that one might spend money on health care without reducing his or her consumption of other goods.