Martha spends 5 hours of free time exercising and playing music per day. The table below represents the level of utility she receives from the various combinations of exercise and music activities. For instance, if she only plays music, her total utility from exercise will be 0, and the utility from music will be 50. If she exercises for 1 hour, she will receive a level of utility of 25. Utility is measured in ‘utils’; those numbers are arbitrary and designed to quantify the benefits received from various actions.Utility for ExerciseUtility from Music0 utils from 0 hours of exercise50 utils from 5 hours of music25 utils for 1 hours of exercise45 utils from 4 hours of music40354520500Marginal analysis will help Martha in her decision making regarding how to spend her free time because ...All answers are correct. She will realize which activity is more important to her. She will be able to find the combination of music and exercise which gives her the most total utility She can compare the gains in utility from exercising to the loss in utility from music to find the optimum combination.

Marginal utility (MU) is defined as the extra utility or benefit a consumer gets by consuming an…

Answered: Martha spends 5 hours of free time…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Martha spends 5 hours of free time exercising and playing music per day. The table below represents the level of utility she receives from the various combinations of exercise and music activities. For instance, if she only plays music, her total utility from exercise will be 0, and the utility from music will be 50. If she exercises for 1 hour, she will receive a level of utility of 25. Utility is measured in ‘utils’; those numbers are arbitrary and designed to quantify the benefits received from various actions.

Utility for Exercise	Utility from Music
0 utils from 0 hours of exercise	50 utils from 5 hours of music
25 utils for 1 hours of exercise	45 utils from 4 hours of music
40	35
45	20
50	0