25Columns 1 through 4 in the following table show the marginal utility, measured in utils, that Ricardo would get by purchasing variousamounts of products A, B, C, and D. Column 5 shows the marginal utility Ricardo gets from saving. Assume that the prices of A, B, C,and D are, respectively, $9, $3, $2, and $6 and that Ricardo has an income of $71.Column 1Column 2Column 3Column 4Column 5Units ofGood AUnits ofUnits ofUnits ofMUMUMUMUGood BGood CGood DNumber ofDollars SavedMU1721241151361525421521223024345312383243343649474184252757555135161865646760.507157273.57470.2581281838280.13Instructions: Enter your answers as a whole number.a. What quantities of A, B, C, and D will Ricardo purchase in maximizing his utility?4 units of A3 units of Bunits of Cunits of Db. How many dollars will Ricardo choose to save?

Marignal utility is the additional benefit to the consumer from consumption. Increased utility…

Columns 1 through 4 in the following table show the marginal utility, measured in utils, that Ricardo would get by purchasing various amounts of products A, B, C, and D. Column 5 shows the marginal utility Ricardo gets from saving. Assume that the prices of A, B, C, and D are, respectively, $9, $3, $2, and $6 and that Ricardo has an income of $71. Column 1 Column 2 Column 3 Column 4 Column 5 Units of Good A NU Units of Units of MU MU MU Good B Good C Units of Good D MU Number of Dollars Saved MU 1 72 1 24 1 2 54 2 15 2 52 1 36 1 5 2 30 2 4 3 45 3 12 3 8 3 24 3 3 4 36 4 9 4 7 4 18 4 2 5 27 5 7 5 5 5 13 5 1 6 18 6 7 15 7 NG 5 6 4 6 7 6 0.50 2 7 3.5 7 4 7 0.25 8 12 8 1 8 3 8 2 8 0.13

Columns 1 through 4 in the following table show the marginal utility, measured in utils, that Ricardo would get by purchasing various amounts of products A, B, C, and D. Column 5 shows the marginal utility Ricardo gets from saving. Assume that the prices of A, B, C, and D are, respectively, $9, $3, $2, and $6 and that Ricardo has an income of $71. Column 1 Column 2 Column 3 Column 4 Column 5 Units of Good A NU Units of Units of MU MU MU Good B Good C Units of Good D MU Number of Dollars Saved MU 1 72 1 24 1 2 54 2 15 2 52 1 36 1 5 2 30 2 4 3 45 3 12 3 8 3 24 3 3 4 36 4 9 4 7 4 18 4 2 5 27 5 7 5 5 5 13 5 1 6 18 6 7 15 7 NG 5 6 4 6 7 6 0.50 2 7 3.5 7 4 7 0.25 8 12 8 1 8 3 8 2 8 0.13

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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