For Unit 4 Learning Journal, you will use the marginal utility formula to choose between two products.  Catherine is having dinner at the Yellow Restaurant. She wants desert after eating her entree. She is trying to decide between a cookie or a slice of pie. The cost of a cookie is $5 and the cost of a slice of pie is $8.  Refer to the Unit 4 Learning Journal Marginal Utility spreadsheet Compute the marginal utility for cookie and slice of pie Compute the marginal utility per dollar What is the utility maximizing choice for a cookie and slice of pie?  Explain what the utility maximizing choice means. Discuss how you could use marginal utility to make consumer choices

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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For Unit 4 Learning Journal, you will use the marginal utility formula to choose between two products.  Catherine is having dinner at the Yellow Restaurant. She wants desert after eating her entree. She is trying to decide between a cookie or a slice of pie. The cost of a cookie is $5 and the cost of a slice of pie is $8.  Refer to the Unit 4 Learning Journal Marginal Utility spreadsheet Compute the marginal utility for cookie and slice of pie Compute the marginal utility per dollar What is the utility maximizing choice for a cookie and slice of pie?  Explain what the utility maximizing choice means. Discuss how you could use marginal utility to make consumer choices
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1 Marginal Utility: Cookie
uantity Consumedſotal Utilit arginal Utilit MarginalQuantity Consumed otal UtilitMarginal Utility
|Marginal Utility: Slice of Pie
Marginal
18
34
49
16
30
142
51
16
4.
5 3
51
71
79
84
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8 6
9 7
60
68
74
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28
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Transcribed Image Text:Sheet1 .. B C D E G H I J 1 Marginal Utility: Cookie uantity Consumedſotal Utilit arginal Utilit MarginalQuantity Consumed otal UtilitMarginal Utility |Marginal Utility: Slice of Pie Marginal 18 34 49 16 30 142 51 16 4. 5 3 51 71 79 84 6 4 7 5 8 6 9 7 60 68 74 18 11 12 13 14 15 16 17 18 19 28 21 22 23 24 25 26 27
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