The table below shows Martha’s total utility from burgers and pasta. Suppose that the price of a burger is $4, the price of pasta is $8 a dish, and Martha has $24 a week to spend.Quantity of Burger per weekTotal utility for BurgerMUMU/PQuantity of Dishes Pasta per weekTotal utility for PastaMUMU/P00 00 110 120 218 236 325 348 431 456 536 560 640 662 a- Conclude whether or not we follow the law of diminishing MU.b- What is optimal combination of Burger and Pasta?

a) Given below is the table which shows MU and MU/P ratio. Quantity of Burger per week Total…

Answered: The table below shows Martha’s total…

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 table below shows Martha’s total utility from burgers and pasta. Suppose that the price of a burger is $4, the price of pasta is $8 a dish, and Martha has $24 a week to spend.

Quantity of Burger per week	Total utility for Burger	MU	MU/P	Quantity of Dishes Pasta per week	Total utility for Pasta	MU	MU/P
0	0			0	0
1	10			1	20
2	18			2	36
3	25			3	48
4	31			4	56
5	36			5	60
6	40			6	62

a- Conclude whether or not we follow the law of diminishing MU.

b- What is optimal combination of Burger and Pasta?

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