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 ( 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 Salmor and Lobster. Copper River Salmon Atlantic Lobster U1 MUI Q (lbs.) 1 2 3 4 5 6 7 8 9 10 20.00 20.00 U2 8.72 MU2 8.72 (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 pr of Copper River Salmon (fillet) is $85.00/lb., you find that your best option is to buy three ounds salmon and ten pounds of lobster. Then, how much is the price of lobster ($/lb.)?
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 ( 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 Salmor and Lobster. Copper River Salmon Atlantic Lobster U1 MUI Q (lbs.) 1 2 3 4 5 6 7 8 9 10 20.00 20.00 U2 8.72 MU2 8.72 (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 pr of Copper River Salmon (fillet) is $85.00/lb., you find that your best option is to buy three ounds salmon and ten pounds of lobster. Then, how much is the price of lobster ($/lb.)?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Help
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.
Copper River Salmon
Atlantic Lobster
Q
(Ibs.)
U1
MU1
U2
MU2
1
20.00
20.00
8.72
8.72
3
4
6.
7
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.)?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps with 3 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education