1. Let the following table represents the total utility of a given consumer, in the cardinal utility approach. Q 2 3 4 5 TUX 8 14 18 20 20 TUY 6 10 13 15 16 MUX MUY MUX/Px MUy/Py A) Calculate the MUX and MUy and fill the table in the 4th and 5th rows. B) If the two products (X&Y) are free goods how many of X and Y should the consumer take to maximize utility? C) What is the maximum utility of X and Y if they are free?.
Let the following table represent the total utility of a given consumer,In the cardinal utility approach.
A) Calculate the MUx and MUy and fill the table in the 4th and 5th rows.
B) If the two products (X&Y) are free goods how many of X and Y should the cons
consumer
take to maximize utility?
C) What is the maximum utility of X and Y if they are free?.
D) Assuming the consumer has any amount of money (enough budget) how many of X and Y should the consumer buy, to maximize utility?
E) What is the total utility of X and Y?
F) Let now price of X is 4 birr per unit and price of Y is 2 birr per unit and budget of the consumer for consumption of X and Y is 20 birr. Given budget constraint how many
of X and Y should the consumer buy to maximize utility?
G) What are the total utility of X and Y
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