(1) The table following provides you total utility (U) and marginal (MU) from consuming Salmon and Lobster. Suppose your total utility of Salmon consumption (U1) is a function of the units (Q as pound or lbs.) of salmon consumed, as U1 = √400Q. Similarly, your total utility of Lobster (U2) has the form as units (Q as lbs.) of lobster consumed, which is U2 = √√36Q+ 40. Now fill the empty spots in the table using the information given. SUDA co
(1) The table following provides you total utility (U) and marginal (MU) from consuming Salmon and Lobster. Suppose your total utility of Salmon consumption (U1) is a function of the units (Q as pound or lbs.) of salmon consumed, as U1 = √400Q. Similarly, your total utility of Lobster (U2) has the form as units (Q as lbs.) of lobster consumed, which is U2 = √√36Q+ 40. Now fill the empty spots in the table using the information given. SUDA co
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:1. Suppose you are considering to make a decent holiday dinner. In this year, to be creative, you
are thinking to put Copper River Salmon from Alaska (fillet) and fresh Atlantic Lobsters from
Maine as entrée on the table. Use the information given, to finish the questions below.
(1) The table following provides you total utility (U) and marginal (MU) from consuming
Salmon and Lobster. Suppose your total utility of Salmon consumption (U1) is a function of the
units (Q as pound or lbs.) of salmon consumed, as U1 = /400Q. Similarly, your total utility of
Lobster (U2) has the form as units (Q as lbs.) of lobster consumed, which is U2 = /36Q + 40.
Now fill the empty spots in the table using the information given.
Total utility and marginal utility of Salmon and Lobster.
Atlantic Lobster
Copper River Salmon
Q
(Ibs.)
U1
MU1
U2
MU2
20.00
20.00
8.72
8.72
1
3
4
6.
8.
9.
10
(2) With a certain amount of budget, you are going to purchase both Salmon and Lobsters. To
maximize your total satisfaction (utility), how you will make your decisions? If the market price
of Copper River Salmon (fillet) is $85.00/lb., you find that your best option is to buy three
pounds salmon and ten pounds of lobster. Then, how much is the price of lobster ($/lb.)?
5
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