Hot-dogs (P = $1) Apple pie slices (P=$2) Hot-dogs Total MUMU/P Apple pie Total MUMU/P ConsumedUtility ConsumedUtility 1 7 1 14 2 13 26 3 18 3 36 4 22 4 44 5 25 50 27 54 7 28 7 56 Assume that hot-dogs cost $1 and apple pie slices cost $2. Your budget is $9. (MU is marginal utility; MU/P is marginal utility divided by price) 1) Fill in the table. For each good, calculate the marginal utility (MU) and the marginal utility per dollar (MU / P). 2) The marginal utility of consuming the second hot dog is 3) The marginal utility of consuming the 6tn apple pie slice is The optimal bundle of goods that maximizes hot- 4) your total utility (and you don't overspend) is: dogs and it. apple pie slices. Explain how you found

Hot-dogs (P = $1) Apple pie slices (P=$2) Hot-dogs Total MUMU/P Apple pie Total MUMU/P ConsumedUtility ConsumedUtility 1 7 1 14 2 13 26 3 18 3 36 4 22 4 44 5 25 50 27 54 7 28 7 56 Assume that hot-dogs cost $1 and apple pie slices cost $2. Your budget is $9. (MU is marginal utility; MU/P is marginal utility divided by price) 1) Fill in the table. For each good, calculate the marginal utility (MU) and the marginal utility per dollar (MU / P). 2) The marginal utility of consuming the second hot dog is 3) The marginal utility of consuming the 6tn apple pie slice is The optimal bundle of goods that maximizes hot- 4) your total utility (and you don't overspend) is: dogs and it. apple pie slices. Explain how you found

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Use the table below to answer the following question. Number of Units A) 95 B) 47.5 190 (D) 90 1 2 3 4 5 5 What is the marginal utility of the second unit? Total Utility 100 190 270 340 400 450
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ECON Questions 5, 6, 7, and 8 How to solve and answer these economics questions showed in the screenshot?
1. Sam is going to Baltimore for the day to watch his favorite baseball team (Orioles). Sam loves his Orioles, but he is addicted to drinking beer (B) and eating hotdogs (D) while watching his team. His utility function is: U = (B*D)1/2 a. Suppose Sam has $50 to spend on beer and hotdogs. Beer costs $5 a mug and a hotdog costs $4. Draw Sam's budget constraint. b. Suppose Sam spends all of his income on beer. How many mugs of beer can he buy? What is his utility? c. Will Sam's income allow him to reach a U = 5? d. If Sam buys 4 hotdogs, how many mugs of bear can he buy? What is his utility? e. What is the combination of beer and hotdogs that yield the highest utility? 2. Firm A's Price $20 $15 $20 $40 profit $35 profit Firm B's Price $37 profit $39 profit $15 $49 profit $38 profit $30 profit $35 profit a. Firms A and B are member of an oligopoly. Which solution will Firm A and B select? b. Is there a Nash equilibrium? If so, what is it? c. Which solution will Firm A and B select if Firm…
The price of good "a" is $5 and the price of good "b" is $15. If the marginal utility of good "a" is 20 then the marginal utility of good "b" must be ________ to have an optimum combination of goods purchased. 80 20 60 4
A, B, C
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Assume that you have a budget of Taka 4000 that can spend on two goods like: coke and burger. Suppose coke costs Taka 100 per unit and burger costs 400 per unit. Suppose also that your utility function is given by the equation U(B, C) = 20BC. Write your budget equation. What combination of coke and burger should you buy to maximize utility?