5. A child is given $8.80 of pocket money to be spent on either hard candies or chocolates.Chocolates cost 40 cents and hard candies 80 cents each. The marginal utilities derivedfrom each product are as shown in the following table:MU of HardCandies150Number ofMU ofItemsChocolates601501403401204301002080610707550820Refer to the above table. Which combination would give the child the maximum utility out ofspending $8.00?O 4 chocolates and 6 hard candiesO 6 chocolates and 8 hard candies2 chocolates and 4 hard candies3 chocolates and 5 hard candiesO 1 chocolate and 3 hard candiesN34 So7 8

Here, given information is: Price of chocolates: 40 cent Price of candles: 80 cent Total spending:…

A child is given $8.80 of pocket money to be spent on either hard candies or chocolates. Chocolates cost 40 cents and hard candies 80 cents each. The marginal utilities derived from each product are as shown in the following table: Number of MU of MU of Hard Items Chocolates Candies 60 150 2 50 140 3 40 120 4 30 100 20 80 6 10 70 7 5 50 8 20 Refer to the above table. Which combination would give the child the maximum utility out of spending $8.00? 4 chocolates and 6 hard candies 6 chocolates and 8 hard candies 2 chocolates and 4 hard candies

A child is given $8.80 of pocket money to be spent on either hard candies or chocolates. Chocolates cost 40 cents and hard candies 80 cents each. The marginal utilities derived from each product are as shown in the following table: Number of MU of MU of Hard Items Chocolates Candies 60 150 2 50 140 3 40 120 4 30 100 20 80 6 10 70 7 5 50 8 20 Refer to the above table. Which combination would give the child the maximum utility out of spending $8.00? 4 chocolates and 6 hard candies 6 chocolates and 8 hard candies 2 chocolates and 4 hard candies

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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