Styles15. Damian Matthews is busy. He allocates his free time between watching movies and working out at the gym.The table below shows his utility from the number of times per week he watches a movie or goes to the gym.Damien has 14 hours a week to spend on movies or the gym (think of hours like $ of income here). Each movietakes 2 hours. Each gym trip takes 2 hours.Q of GymTotalQ of Movie Total UtilityvisitsUtility fromvisitsfromGym Visitsmovies10016018011032403150428041803101903301953407197a) What bundles of gym visits and movies can Damien consume if he spends 1) all his time in the gym or 2)all his time watching movies?b) Calculate the marginal utility of each gym visit'and movie. Then calculate the Marginal Utility per hourof each activity.c) How should he allocate his time to maximize his utility?12

Marginal utility is the additional utility gained in total utility when one extra unit is consumed.…

Bamian Matthews is busy. He allocates his free time between watching movies and working out at the gym. The table below shows his utility from the number of times per week he watches a movie or goes to the gym. Damien has 14 hours a week to spend on movies or the gym (think of hours like $ of income here). Each movie takes 2 hours. Each gym trip takes 2 hours. Q of Gym Total visits Q of Movie Total Utility Utility from Gym Visits visits from movies 1 100 1 60 180 110 3. 240 3 150 4 280 180 310 190 6. 330 6. 195 7. 340 197 a) What bundles of gym visits and movies can Damien consume if he spends 1) all his time in the gym or 2) all his time watching movies? b) Calculate the marginal utility of each gym visit 'and movie. Then calculate the Marginal Utility per hour of each activity. c) How should he allocate his time to maximize his utility?

Bamian Matthews is busy. He allocates his free time between watching movies and working out at the gym. The table below shows his utility from the number of times per week he watches a movie or goes to the gym. Damien has 14 hours a week to spend on movies or the gym (think of hours like $ of income here). Each movie takes 2 hours. Each gym trip takes 2 hours. Q of Gym Total visits Q of Movie Total Utility Utility from Gym Visits visits from movies 1 100 1 60 180 110 3. 240 3 150 4 280 180 310 190 6. 330 6. 195 7. 340 197 a) What bundles of gym visits and movies can Damien consume if he spends 1) all his time in the gym or 2) all his time watching movies? b) Calculate the marginal utility of each gym visit 'and movie. Then calculate the Marginal Utility per hour of each activity. c) How should he allocate his time to maximize his utility?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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