Diogo has a utility function: U = 100X920.1 The price of X is p, = $10, the price of Z is p₂ = $4, and his income is $1,200. What is Diogo's optimal bundle? (round your answer to one decimal place) x₂ = Z₁ = units units

Diogo has a utility function: U = 100X920.1 The price of X is p, = $10, the price of Z is p₂ = $4, and his income is $1,200. What is Diogo's optimal bundle? (round your answer to one decimal place) x₂ = Z₁ = units units

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter6: Consumer Choice And Demand

Section: Chapter Questions

Problem 13PAE

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9 of 15 Laura has an income of 100 and she has to spend it to buy daisies (x₁) and daffodils (x2). Her preferences are represented by a Cobb Douglas utility function u(x1,x2)= x1x2. If daisies are twice as expensive as the daffodils, what would her optimal bundle be? O Buy only daffodils O Buy only daisies O Buy twice as many daffodils as daisies O Buy twice as many daisies as daffodils O Buy same amount of daisies and daffodils O No answer.
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Jessica has an income of $216 and she is buying apple cider and books. Apple cider is $8 per unit and books are $24 each. The following table shows her marginal utility per dollar spent. Which of the bundles will maximize her total utility? Enter the letter of the bundle only. Bundle Q(A) MU/$(A) Q(B) MU/$(B) 9. 6.13 5.13 B. 3. 8. 5.38 5.21 6. 7 4.63 5.29 6. 3.88 5.38 12 3.13 5.46 4. 2.38 5.54 G. 18 1.63 5.63 H. 21 0.88 5.71 24 0.13 5.79 27 0. Answer 15
Consider the following table, which listsJames’s marginal utility schedule for steak andhamburger meals: Given a budget of $45, how many steak and hamburgermeals will James buy per month to maximizehis total utility? What is the total utilityrealized?
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5. Julio who consumes two goods Food (F) and clothing (C) has a utility function given by U(F,C)= sqrt(F)C. The price of food is $3 and the price of clothing is $5 and Julio's weekly budget for food and clothing is $100. a. What is Julio's MRSFe (marginal rate of substiution of food for clothing) when utility is maximized? Explain. b. If Julio is at point where MRSFC= 1, where is that point relative to the utility maximzing bundle (show this in a diagram)? c. Can Julio change his bundle so as to increase his satisfaction and if so in what way? Explain fully Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
The table below shows total utility for two products. Suppose that the price for product A is $5 and the price for product B is $5. Number of product A Total Utility for A Number of product B Total Utility for B 0 0 0 0 1 140 1 180 2 260 2 340 3 360 3 460 4 440 4 520 5 500 5 540 Given this data, complete the table below: Quantity of A Marginal Utility for A Marginal Utility for A per dollar Quantity of B Marginal Utility for B Marginal Utility for B per dollar 0 0 1 1 2 2 3 3 4 4 5 5
4. Jerry lives in a dormitory that offers soft drinks and chips for sale in vending machines. Her utility function is U = 60SC (where S is the number of soft drinks per week and C the number of bags of chips per week), so her marginal utility of Sis 60C and her marginal utility of C is 60S. Soft drinks are priced at 10birr each, chips 5birr per bag. A. Write the expression for Jerry's marginal rate of substitution between soft drink and chips. B. Use the expression generated in part (A) to determine Jerry's optimal mix of soft drink and chips C. If Jerry has 100 birr per week to spend on chips and soft drink how many of each she she purchase per week? 5. Given the long run production function is Q = 200LK3 calculate A. AP and AP. B. MPL and MPK C. MRTSLK D. elasticity of substitution 6. Given the total cost function Q = Q - 4Q? + 14Q +60 A. Specify average variable, marginal cost and average total cost function B. Is average variable cost is reached at its minimum point at higher or…
Ques 1. Sally consumes two goods, X and Y. Her utility function is given by the expression U=3XY2. The marginal utility of X and marginal utility of Y are given by the following equations: MUX=3Y2 and MUY=6XY The current market price for X is $10, while the market price for Y is $5. Sally's current income is $500. A) Draw out Sally’s budget line. (show the points where it meets the vertical and horizontal axes) B) Determine the X,Y combination which maximizes Sally's utility, given her budget constraint. (Partial units for the quantities are possible.) [Hint: One of the ways to do this is to use the equal marginal principle to find the optimal ratio of X to Y and then use that in the budget equation]. C) How much is Sally’s utility? Now the price of X increases to $15. What is the ratio in which she will consume X and Y ?