Refer to the following table. Suppose strawberries cost $1 and apples cost $2. SHow all the formulas used and your calculations. What is marginal utility (MU) of the 3rd apple? What is marginal utility (MU) of 6th strawberry? What is the marginal utility per dollar spent on the 3th apple?

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Refer to the following table. Suppose strawberries cost $1 and apples cost $2. SHow all the formulas used and your calculations.

  1. What is marginal utility (MU) of the 3rd apple?
  2. What is marginal utility (MU) of 6th strawberry?
  3. What is the marginal utility per dollar spent on the 3th apple?
  4. What is the marginal utility per dollar spent on the 6th strawberry?
  5. Which of the combinations of strawberries and apples satisfies the following rule? How do you know?
     
Strawberries
0
1
2
34567
Total Utility from consumption of Apples and Strawberries
Consumed
Total Utility
Apples Consumed
0
7
13
18
22
25
27
28
0
1
2
3
4567
Total Utility
0
14
26
36
44
50
54
56
Transcribed Image Text:Strawberries 0 1 2 34567 Total Utility from consumption of Apples and Strawberries Consumed Total Utility Apples Consumed 0 7 13 18 22 25 27 28 0 1 2 3 4567 Total Utility 0 14 26 36 44 50 54 56
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