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$30 160 $20 Mix My 90 2.1 Fill in the following Table, using the principles of Utility Theory: Price Maximizing Satisfaction? If No, what to do? Kes / No Yos / No Yes /No $50 Buy more S/Buy fewer S $40 Buy more S/ Buy fewer S 33 $30 Buy more S/Buy feyer S $20 Yes / No Buy more S/Buy fewer S

$30 160 $20 Mix My 90 2.1 Fill in the following Table, using the principles of Utility Theory: Price Maximizing Satisfaction? If No, what to do? Kes / No Yos / No Yes /No $50 Buy more S/Buy fewer S $40 Buy more S/ Buy fewer S 33 $30 Buy more S/Buy feyer S $20 Yes / No Buy more S/Buy fewer S

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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2. Utility Maximization Below are data about Sammy Shopper who buys fancy shirts (S) at various prices and other goods (Y) with Py = $1. It turns out that, for Sammy, whatever the number of shirts purchased, he buys units of Y such that the last unit of Y purchased generates an additional 5 "jollies" of satisfaction. His purchases of shirts generate the following Marginal Utilities for the last unit purchased: 不管又了色如叶 Price per Shirt (S) MU of last unit of S purchased (“jollies) AS TIY $50 250 $40 200 $30 160 Mix My $20 90 务。 2.1 Fill in the following Table, using the principles of Utility Theory: Price Maximizing Satisfaction? If No, what to do? Kes / No Yos / No Yes /No $50 Buy more S/ Buy fewer S $40 Buy more S/ Buy fewer S Buy more S/ Buy feyer S $30 MUX PX $20 Yes / No Buy more S/Buy fewer S 55
Transcribed Image Text:2. Utility Maximization Below are data about Sammy Shopper who buys fancy shirts (S) at various prices and other goods (Y) with Py = $1. It turns out that, for Sammy, whatever the number of shirts purchased, he buys units of Y such that the last unit of Y purchased generates an additional 5 "jollies" of satisfaction. His purchases of shirts generate the following Marginal Utilities for the last unit purchased: 不管又了色如叶 Price per Shirt (S) MU of last unit of S purchased (“jollies) AS TIY $50 250 $40 200 $30 160 Mix My $20 90 务。 2.1 Fill in the following Table, using the principles of Utility Theory: Price Maximizing Satisfaction? If No, what to do? Kes / No Yos / No Yes /No $50 Buy more S/ Buy fewer S $40 Buy more S/ Buy fewer S Buy more S/ Buy feyer S $30 MUX PX $20 Yes / No Buy more S/Buy fewer S 55
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