2.Utility MaximizationBelow are data about Sammy Shopper who buys fancy shirts (S) at various prices and othergoods (Y) with Py = $1.It turns out that, for Sammy, whatever the number of shirts purchased, he buys units of Y suchthat the last unit of Y purchased generates an additional 5 "jollies" of satisfaction. His purchasesof 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$50250$40200$30160Mix My$2090务。2.1Fill in the following Table, using the principles of Utility Theory:PriceMaximizing Satisfaction?If No, what to do?Kes / NoYos / NoYes /No$50Buy more S/ Buy fewer S$40Buy more S/ Buy fewer SBuy more S/ Buy feyer S$30MUXPX$20Yes / NoBuy more S/Buy fewer S55

Utility maximization is a strategic scheme whereby individuals and companies seek to achieve the…

$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

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Mylie's total utility from singing the same song over and over is 70 utils after one repetition, 110 utils after two repetitions, 140 utils after three repetitions, 160 utils after four repetitions, 120 utils after five repetitions, and 60 utils after six repetitions, as shown in the table below. a. Write down her marginal utility for each repetition. Instructions: Enter your answers as a whole number. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. Repetitions 0 1 2 3 4 5 6 Total Utility Marginal Utility 0 70 110 140 160 120 60 b. Once Mylie's total utility begins to decrease, does each additional singing of the song hurt more than the previous song or less than the previous song? O More than the previous song O Less than the previous song
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