every week is given by U(t) = 11t - 212. 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. a) How many hours should Rohit play if he wishes to maximise his utility? b) Explain what we mean by the principle of diminishing marginal utility. Does the principle apply in Rohit's case? Explain why? In a diagram with income in Dollars on the horizontal axis and quantity on the vertical axis, show the relationship between Rohit's budget and the number of hours that would maximise his consumer surplus.

every week is given by U(t) = 11t - 212. 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. a) How many hours should Rohit play if he wishes to maximise his utility? b) Explain what we mean by the principle of diminishing marginal utility. Does the principle apply in Rohit's case? Explain why? In a diagram with income in Dollars on the horizontal axis and quantity on the vertical axis, show the relationship between Rohit's budget and the number of hours that would maximise his consumer surplus.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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