EBK MICROECONOMICS
2nd Edition
ISBN: 9780134458496
Author: List
Publisher: VST
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Question
Chapter 3, Problem 5P
a.
To determine
The changes in benefit value as the number of gallons purchased increases.
b.
To determine
The best number of gallons to purchase.
c.
To determine
The optimal number of gallons of gasoline after imposition of taxes.
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Students have asked these similar questions
Janelle loves sashimi. Her first piece of sashimi usually gives her a marginal benefit of $5. Each additional piece yields a
marginal benefit that declines by $0.25 per piece. If her favorite sushi bar charges $2.75 per piece of sashimi, how many pieces
should she eat? [1]
The daily total utility per quantity of
consumption is shown in the figure. This
shows that the total utility of consuming 1
product is $1.60, the total utility of 2
products is $3.00, and so on.
Using marginal analysis, for which market
price (per unit) is the optimal daily quantity
of consumption 4 units?
Quantity (units)
1
2
3
4
5
Total utility
$1.60
$3
$4.20
$5.20
$6.00
a) $5.10
b) $0.90
c) $1.10
d) $1.30
e) $5.30
minimum of 200 words please
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