The table below contains information about the total utility Jerry gains from coffee and pastries he buys from the coffee shop Total utility from Coffee Total utility from Pastries No of Coffee & Pastries 1.50 10 2.70 13 3 3.60 15 3.60 16 5 16.5 a) Calculate Jerry's marginal utility from coffee at each number of cups per 2 hours. Does Jerry's marginal utility from Coffee obey the principle of diminishing marginal utility? b) Calculate Jerry's marginal utility from Pastries at each number of hours per 2 hours. Does Jerry's marginal utility from Pastries obey the principle of diminishing marginal utility? c) Which does Jerry's enjoy more: his 4th cup of Coffee or his 4th piece of pastries?
The table below contains information about the total utility Jerry gains from coffee and pastries he buys from the coffee shop Total utility from Coffee Total utility from Pastries No of Coffee & Pastries 1.50 10 2.70 13 3 3.60 15 3.60 16 5 16.5 a) Calculate Jerry's marginal utility from coffee at each number of cups per 2 hours. Does Jerry's marginal utility from Coffee obey the principle of diminishing marginal utility? b) Calculate Jerry's marginal utility from Pastries at each number of hours per 2 hours. Does Jerry's marginal utility from Pastries obey the principle of diminishing marginal utility? c) Which does Jerry's enjoy more: his 4th cup of Coffee or his 4th piece of pastries?
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
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Transcribed Image Text:Question No. 3
The table below contains information about the total utility Jerry gains from coffee and pastries
he buys from the coffee shop
Total utility
Total utility
No of
from Coffee
from Pastries
Coffee &
Pastries
1.50
10
2
2.70
13
3
3.60
15
4
3.60
16
5
16.5
a) Calculate Jerry's marginal utility from coffee at each number of cups per 2
hours. Does Jerry's marginal utility from Coffee obey the principle of
diminishing marginal utility?
b) Calculate Jerry's marginal utility from Pastries at each number of hours per 2
hours. Does Jerry's marginal utility from Pastries obey the principle of
diminishing marginal utility?
c) Which does Jerry's enjoy more: his 4th cup of Coffee or his 4th piece of
pastries?
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