Ethan has $17 per week in his food budget. He splits his choicesbetween pizzas and hot dogs. Each slice of pizza costs $2 while eachhot dog costs $3. The total utility (TU) from each of these choices isset out in the table below.Marginal utility for pizza and hotdog(MU/$) for TUMUMU pizzahotdogUnitsTUpizzapizza hotdog1 10521893201242215523171. Complete the table calculating marginal utility (MU) and marginalutility per dollar (MU/$) for both choices. Remember to show yourwork for at least one unit!2. What is Ethan's utility maximizing choice? Justify your answer byshowing your work! HINT: use the budget constraint equation toshow the optimal choice!(MU/$) forhotdog

Marginal utility is the extra satisfaction you get from consuming one more unit of a specific good.…

Ethan has $17 per week in his food budget. He splits his choices between pizzas and hot dogs. Each slice of pizza costs $2 while each hot dog costs $3. The total utility (TU) from each of these choices is set out in the table below. Units TU pizza 10 Marginal utility for pizza and hotdog (MU/$) for TU MU MU pizza hotdog pizza hotdog 5 9 (MU/$) for hotdog 1 2 18 3 20 12 4 22 15 5 23 17 1. Complete the table calculating marginal utility (MU) and marginal utility per dollar (MU/$) for both choices. Remember to show your work for at least one unit! 2. What is Ethan's utility maximizing choice? Justify your answer by showing your work! HINT: use the budget constraint equation to show the optimal choice!

Ethan has $17 per week in his food budget. He splits his choices between pizzas and hot dogs. Each slice of pizza costs $2 while each hot dog costs $3. The total utility (TU) from each of these choices is set out in the table below. Units TU pizza 10 Marginal utility for pizza and hotdog (MU/$) for TU MU MU pizza hotdog pizza hotdog 5 9 (MU/$) for hotdog 1 2 18 3 20 12 4 22 15 5 23 17 1. Complete the table calculating marginal utility (MU) and marginal utility per dollar (MU/$) for both choices. Remember to show your work for at least one unit! 2. What is Ethan's utility maximizing choice? Justify your answer by showing your work! HINT: use the budget constraint equation to show the optimal choice!

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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