The relationship between the marginal utility that George gets from eating a bag of cookies and the number of bags he eats per month is as follows: Bags of Cookies 1 2 3 4 S 6 Marginal Utility 20 16 12 8 4 0 George receives 2 units of utility from the last dollar spent on each of the other goods he consumes. If cookies cost $4 per bag, how many bags of cookies will he consume per month if he maximizes utility? Add your answer Integer, decimal, or E notation allowed Question 10 If the utility function for the consumer is: U= min{10 x1, 50 x2} P₁= 4, P₂-6 and 1-2,000 What is the optimal amount of x₁? 10 Points
The relationship between the marginal utility that George gets from eating a bag of cookies and the number of bags he eats per month is as follows: Bags of Cookies 1 2 3 4 S 6 Marginal Utility 20 16 12 8 4 0 George receives 2 units of utility from the last dollar spent on each of the other goods he consumes. If cookies cost $4 per bag, how many bags of cookies will he consume per month if he maximizes utility? Add your answer Integer, decimal, or E notation allowed Question 10 If the utility function for the consumer is: U= min{10 x1, 50 x2} P₁= 4, P₂-6 and 1-2,000 What is the optimal amount of x₁? 10 Points
Chapter10: Consumer Choice Theory
Section: Chapter Questions
Problem 9P
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Transcribed Image Text:The relationship between the marginal utility that George gets from eating a bag of cookies and the number of bags he eats per
month is as follows:
Bags of
Cookies
1
2
3
4
S
6
Marginal
Utility
20
16
12
8
4
0
George receives 2 units of utility from the last dollar spent on each of the other goods he consumes. If cookies cost $4 per bag, how
many bags of cookies will he consume per month if he maximizes utility?
Add your answer
Integer, decimal, or E notation allowed
Question 10
If the utility function for the consumer is:
U= min{10 x1, 50 x2}
P₁= 4, P₂-6 and 1-2,000
What is the optimal amount of x₁?
10 Points
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