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A:
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Q: Units Total Marginal Consumed Utility Utility 10 32 3.2 20 2.8 30 86 40 111 50 2.4 60 158
A: marginal utility (MU) = change in total utility (TU) / change in units (Q) So, change in TU = MU x…
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Derive the
TU = 200Q – 25Q² + Q³
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- Assume that a person’s utility depends on two products, x and y. The utility function is given by U(x, y) = (x + 2)^2(y + 3)^3. Find the marginal utility of x and marginal utility of y.Help me pleasePaolo enjoys consuming both soda and coffee. Each can of soda costs Ps = $1, and each cup of coffee costs Pc = $2. Suppose that Paolo buys 75 cans of soda and 50 cups of coffee per month. The following graphs show his marginal utility curves for soda and coffee. At his current consumption level, Paolo's marginal utility from consuming the last can of soda he bought is MUS = 12 utils per can, and his marginal utility from consuming the last cup of coffee he bought is MUC = 12 utils per cup. 24 20 20 16 25 50 75 100 125 150 25 50 75 100 125 150 SODA (Cans) COFFEE (Cups) Is Paolo currently maximizing his utility? O No; he likes coffee and soda more than other goods, so he should buy more of both. O No; he could buy less soda and more coffee, not spend any more money, and be better off. O Yes; the marginal utility he receives from his last can of soda equals that of his last cup of coffee. O No; he could buy more soda and less coffee, not spend any more money, and be better off. MU OF SODA…
- Define the Marginal Rate of Substitution between two goods (X and Y).If a consumer’s preferences are given by U(X,Y) = X1/4Y 3/4, compute the consumer’s marginalrate of substitution as a function of X and Y. Calculate the MRS if the consumer has chosen toconsumer 12 units of X and 30 units of Y.suppose a consumer consumes two goods x and y with utility function u=x^0.5+y^1.5, does the utility funciton exhibit diminishing marginal utility for (i) x (ii)y?Supreme Court Justice Bret Kavanaugh likes beer. The first beer he drinks yields 20 utils; the second, 15 utils. If the total utility from consuming three beers is 30 utils, then the marginal utility of the third beer: all of these tells us he should have stopped at 2 beers causes total utility to fall is negative
- You currently have (x, y) = (8, 2) and the utility function U(x, y) = min(x, 4y ). How many units of X are you willing to give up to get another unit of Y?Jackie has a budget of $36 per month to spend on snacks. She can spend this budget on bags of potato chips (C) and Hershey chocolate bars (H). Potato chips cost $4 per bag, while Hershey bars cost $1 per bar. The utility that Jackie receives from consuming potato chips and Hershey bars is represented by the following utility function: U=3C2 H. Given that Jackie seeks to maximize her utility, find the number of potato chip bags and Hershey chocolate bars that Jackie will purchase each month.For the utility function U = Qx^0.84Qy^(1-0.84) rate between good X and good Y at Qx= 7 and Qy=19 find the trade-off
- Gino derives utility from only two goods, carrots (Qc) and donuts (Qd). His utility function is as follows:U(Qc,Qd) = (Qc)(Qd)The marginal utility that Donald receives from carrots (MUc) and donuts (MUd) are given as follows:MUc = Qd MUd = QcGino has an income (I) of £120 and the price of carrots (Pc) and donuts (Pd) are both £1. - suppose a lump sum tax of the same dollar amount, of a 1 pound tax per unit on donuts, is levied on Gino. what is Gino's utility maximising market basket? - why would Gino prefer a per unit tax over the lump sum tax, or vice versa, or why is he indifferent between the two taxes.You consume music (M) and concert tickets (C). Your utility function is U(M, C) = M1/4C3/4. The marginal utility for concert tickets, MUC is MUC =3/4C-1/2M1/4 and the marginal utility for music, MUM is MUm = 1/4C3/4M-3/4 (a) Calculate MRSMC using only the given marginal utilities. (b) Solve for the utility of bundle A where M = 16 and C = 16. Solve for your utility at bundle B where M = 128 and C = 8. Are the utilities the same? (c) Calculate MRSMC at bundle A and at bundle B. Are they the same? (d) Are your indifference curves convex? Draw the ICs. Make sure to label the quantities of the consumption bundles, the axis, and the MRS at those bundles.Fang likes playing badminton with her friends. Her utility function for playing badminton every week is given by U(t) = 11t – 2t2, where t is measured in hours. They play on a badminton court, which they can rent per hour. Suppose the current price to play on the badminton court is £2.50 per hour. How many hours should Fang play if she wishes to maximise her utility? Explain what we mean by the principle of diminishing marginal utility. Does the principle apply in Fang’s case? Explain why. In a diagram with income in pound sterling on the horizontal axis and quantity on the vertical axis, show the relationship between Fang’s budget and the number of hours that would maximise her consumer surplus.
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