The following table shows the amounts of additional satisfaction (marginal utility) that Ross would get from consuming successive quantities of products A and B.a. Fill in the MU/P column for each product. Price of Good A = $8Price of Good B = $4Units of Good AMU of Good A, utilsMU/P for AUnits of Good BMU of Good B, utilsMU/P for B156 132 248 228 332 324 424 420 520 512 616 610 712 78 If Ross has an income of $28, how many units of each good will he purchase to maximize his utility?______units of good A ______units of good B

Utility is defined as the usefulness or the satisfaction a consumer derives from a good or service…

Answered: The following table shows the amounts…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The following table shows the amounts of additional satisfaction (marginal utility) that Ross would get from consuming successive quantities of products A and B.

a. Fill in the MU/P column for each product.

Price of Good A = $8	Price of Good B = $4
Units of Good A	MU of Good A, utils	MU/P for A	Units of Good B	MU of Good B, utils	MU/P for B
1	56		1	32
2	48		2	28
3	32		3	24
4	24		4	20
5	20		5	12
6	16		6	10
7	12		7	8

If Ross has an income of $28, how many units of each good will he purchase to maximize his utility?

______units of good A

______units of good B

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