TU = Total Utilityf= is a function ofMU = Marginal UtilityO = units of consumptionA= infinitesimal changeEMV= Equimarginal Value Compute for the optimum combination making use of the 6 steps and fill out theblanks with the missing value.Price of Good A is P=.75Price of Good B is P= .50Note of the .01 toleranceQuantityMUaMUa/PaQuantityMUbMUb/Pb180333.335066.6753.333409404401226.66526.67156.6661013.3318This are all your reference in answering all questions. There are six steps to follow in the proper computation of the optimum combination:1. State the necessary condition.2. Work out the first element in the equationWork out the second element in the equation.3.4. Find the equimarginal value.5. Choose the quantity combination.6. Proof: TC = Budget

Equi marginal principle belongs to the micro economics analysis. It says that marginal value derived…

Compute for the optimum combination making use of the 6 steps and fill out the blanks with the missing value. Price of GoodA is P=.75 Price of GoodB is P= .50 Note of the .01 tolerance Quantity MUa MUa/Pa Quantity MUb MUb/Pb 1 80 3 33.33

Compute for the optimum combination making use of the 6 steps and fill out the blanks with the missing value. Price of GoodA is P=.75 Price of GoodB is P= .50 Note of the .01 tolerance Quantity MUa MUa/Pa Quantity MUb MUb/Pb 1 80 3 33.33

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Consumer Choice Theory

Section: Chapter Questions

Problem 4SQP

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Question

TU = Total Utility
f= is a function of
MU = Marginal Utility
O = units of consumption
A= infinitesimal change

EMV= Equimarginal Value

Compute for the optimum combination making use of the 6 steps and fill out the
blanks with the missing value.
Price of Good A is P=.75
Price of Good B is P= .50
Note of the .01 tolerance
Quantity
MUa
MUa/Pa
Quantity
MUb
MUb/Pb
1
80
3
33.33
50
66.67
53.33
3
40
9
40
4
40
12
26.66
5
26.67
15
6.66
6
10
13.33
18
This are all your reference in answering all questions.

There are six steps to follow in the proper computation of the optimum combination:
1. State the necessary condition.
2. Work out the first element in the equation
Work out the second element in the equation.
3.
4. Find the equimarginal value.
5. Choose the quantity combination.
6. Proof: TC = Budget

Definition Definition Satisfaction derived from the consumption of an additional unit of any commodity.

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