Part 3 Given the total quantity of movie tickets and total concession stand items consumed in a month and the total utility derived at Ruby Red Movie Theater for the change in concession stand prices, calculate the marginal utility and the marginal utility per dollar for movie tickets and concession stand items.   Step 1:  Calculate marginal utility and marginal utility per dollar for movie tickets. (Note: The information here is the same as in Part 1, Step 1.)  Quantity of Tickets Consumed Total Utility   Marginal Utility   Movie Ticket Price   Marginal Utility Per Dollar for Movie Tickets 0 0   ---   ---   ---                 200 150       $10.00                     400 275       $10.00                     600 375       $10.00                     800 450       $10.00                     1,000 500       $10.00                     1,200 525       $10.00                     1,400 525       $10.00                               (Continue on next page) Step 2:  Calculate marginal utility and marginal utility per dollar for concession stand items. Quantity of Concession Stand Items Consumed Total Utility   Marginal Utility   Average Item Price   Marginal Utility Per Dollar for Concession Items 0 0   ---   ---   ---                 400 200       $20.00                     800 375       $20.00                     1,200 525       $20.00                     1,600 650       $20.00                     2,000 750       $20.00                     2,400 825       $20.00                     2,800 875       $20.00                       Part 3 Question 1: What quantity combination of movie tickets and concession stand items would maximize utility now that the average price of concession items has changed?                 Your Answers:     Quantity of Movie Tickets     Quantity of Concession Stand Items   Part 3 Question 2:  What is the average price concession stand items?               Your Answer:     Concession Stand Items Average Price

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
icon
Related questions
Question

Part 3

Given the total quantity of movie tickets and total concession stand items consumed in a month and the total utility derived at Ruby Red Movie Theater for the change in concession stand prices, calculate the marginal utility and the marginal utility per dollar for movie tickets and concession stand items.

 

Step 1:  Calculate marginal utility and marginal utility per dollar for movie tickets. (Note: The information here is the same as in Part 1, Step 1.)

 Quantity of Tickets

Consumed

Total

Utility

 

Marginal

Utility

 

Movie Ticket

Price

 

Marginal Utility

Per Dollar for Movie Tickets

0

0

 

---

 

---

 

---

 

 

 

 

 

 

 

 

200

150

 

 

 

$10.00

 

 

 

 

 

 

 

 

 

 

400

275

 

 

 

$10.00

 

 

 

 

 

 

 

 

 

 

600

375

 

 

 

$10.00

 

 

 

 

 

 

 

 

 

 

800

450

 

 

 

$10.00

 

 

 

 

 

 

 

 

 

 

1,000

500

 

 

 

$10.00

 

 

 

 

 

 

 

 

 

 

1,200

525

 

 

 

$10.00

 

 

 

 

 

 

 

 

 

 

1,400

525

 

 

 

$10.00

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Continue on next page)

Step 2:  Calculate marginal utility and marginal utility per dollar for concession stand items.

Quantity of Concession Stand Items

Consumed

Total

Utility

 

Marginal

Utility

 

Average Item

Price

 

Marginal Utility

Per Dollar for Concession Items

0

0

 

---

 

---

 

---

 

 

 

 

 

 

 

 

400

200

 

 

 

$20.00

 

 

 

 

 

 

 

 

 

 

800

375

 

 

 

$20.00

 

 

 

 

 

 

 

 

 

 

1,200

525

 

 

 

$20.00

 

 

 

 

 

 

 

 

 

 

1,600

650

 

 

 

$20.00

 

 

 

 

 

 

 

 

 

 

2,000

750

 

 

 

$20.00

 

 

 

 

 

 

 

 

 

 

2,400

825

 

 

 

$20.00

 

 

 

 

 

 

 

 

 

 

2,800

875

 

 

 

$20.00

 

 

 

 

 

 

 

 

 

 

 

Part 3 Question 1: What quantity combination of movie tickets and concession stand items would maximize utility now that the average price of concession items has changed?

 

              Your Answers:

 

 

Quantity of Movie Tickets

 

 

Quantity of Concession Stand Items

 

Part 3 Question 2:  What is the average price concession stand items?

              Your Answer:

 

 

Concession Stand Items Average Price

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Utility Maximization
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education