The following table shows the amounts of additional satisfaction (marginal utility) that Ross would get from con quantities of products A and B. Fill in the MU/P column for each product. Instructions: Enter your answers rounded to one decimal place. Price of Good A = $6 Price of Good B = $4 Units of MU of GoodA, Units of MU of Good B, utils MU/P for A MU/P for B Good A utils Good B 54 1 32 2 48 2 28 3 42 3 24 4 36 4 20 5 30 16 6 24 6 12 7 18 7
The following table shows the amounts of additional satisfaction (marginal utility) that Ross would get from con quantities of products A and B. Fill in the MU/P column for each product. Instructions: Enter your answers rounded to one decimal place. Price of Good A = $6 Price of Good B = $4 Units of MU of GoodA, Units of MU of Good B, utils MU/P for A MU/P for B Good A utils Good B 54 1 32 2 48 2 28 3 42 3 24 4 36 4 20 5 30 16 6 24 6 12 7 18 7
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Transcribed Image Text:The following table shows the amounts of additional satisfaction (marginal utility) that Ross would get from consuming successive
quantities of products A and B.
Fill in the MU/P column for each product.
Instructions: Enter your answers rounded to one decimal place.
Price of Good A = $6
Price of Good B = $4
Units of
MU of Good A,
Units of
MU of Good B,
MU/P for A
MU/P for B
Good A
utils
Good B
utils
1
54
1
32
48
2
28
42
3
24
4
36
4
20
30
16
6.
24
6.
12
7
18
7
8
Transcribed Image Text:If Ross has an income of $26, how many units of each good will he purchase to maximize his utility?
Instructions: Enter your answers as a whole number.
unit(s) of good A
unit(s) of good B
Now suppose the price of good A rises. If he still has $26 to spend, then to maximize his utility, Ross should purchase:
less of good A and more of good B.
more of good A and the same quantity of good B.
more of good A.
more of good A and less of good B.
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