Table 1 shows Cassandra's utility from the consumption of Popcorn (P.) and Candy bars (Ce) during a week. Total Marginal utility Utility from from Рорсom Рopсom TUPC MUPC Marginal utility from Candybars Candybars Pcs MUCB Total MUPC utility from MUCE Quantity PPC TUCB 1 20 13 36 26 50 36 4 62 44 72 51 б 80 57 Ppc = P10 Pce = P5.00 1. Fill out the empty columns applying an appropriate formula. 2. Cassandra's weekly allowance is P40. Answer the following if she spends her entire income, a. How much popcorn and how many candy bars will Cassandra consume each week if she maximizes her utility? candy bars b. Show that the 2 utility maximizing conditions (equi-marginal principle and the income constraint) are satisfied. MUCB рорcom; b.1. MUPC PPc Pcs b.2. I= PPc Qpc + Pca Qcs c. If Cassandra consumes 3 bags of popcorn and 2 candy bars, compute and explain why with this combination, she is not maximizing utility.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
icon
Related questions
Question
Table 1 shows Cassandra's utility from the consumption of Popcorn (P.) and
Candy bars (Ce) during a week.
Marginal
utility
from
Рорсorn | Popcorn
MUPC
Total
utility
from
Total
Utility
from
Marginal
utility
from
MUPC
MUCA
Quantity
PPc Candybars Candybars PB
TUCB
TUPC
MUCB
1
20
13
36
26
50
36
4
62
44
72
51
6.
80
57
PPc = P10
PCB = P5.00
1. Fill out the empty columns applying an appropriate formula.
2. Cassandra's weekly allowance is P40. Answer the following if she
spends her entire income,
a. How much popcorn and how many candy bars will Cassandra
consume each week if she maximizes her utility?.
candy bars
рорcorn;
b. Show that the 2 utility maximizing conditions (equi-marginal
principle and the income constraint) are satisfied.
b.1. MUPC
MUCB
PPc
PcB
b.2. I= PPc QPc + PcB QcB
c. If Cassandra consumes 3 bags of popcorn and 2 candy bars,
compute and explain why with this combination, she is not
maximizing utility.
Transcribed Image Text:Table 1 shows Cassandra's utility from the consumption of Popcorn (P.) and Candy bars (Ce) during a week. Marginal utility from Рорсorn | Popcorn MUPC Total utility from Total Utility from Marginal utility from MUPC MUCA Quantity PPc Candybars Candybars PB TUCB TUPC MUCB 1 20 13 36 26 50 36 4 62 44 72 51 6. 80 57 PPc = P10 PCB = P5.00 1. Fill out the empty columns applying an appropriate formula. 2. Cassandra's weekly allowance is P40. Answer the following if she spends her entire income, a. How much popcorn and how many candy bars will Cassandra consume each week if she maximizes her utility?. candy bars рорcorn; b. Show that the 2 utility maximizing conditions (equi-marginal principle and the income constraint) are satisfied. b.1. MUPC MUCB PPc PcB b.2. I= PPc QPc + PcB QcB c. If Cassandra consumes 3 bags of popcorn and 2 candy bars, compute and explain why with this combination, she is not maximizing utility.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
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