The table below shows the marginal-utility schedules for goods A and B for a hypothetical consumer. The price of good A is $1 and the price of good B is $2. The income of the consumer is $11. Good A Good B Quantity MUA Quantity MU 1 10 1 16 2 9 2 14 3 8 3 12 4 7 4 10 5 6 6 5 567 8 6 4 7 7 18-Refer to the above table. What the utility-maximizing combination of goods A and B for this consumer: A. 3 of A and 1 of B B. 4 of A and 2 of B C. 5 of A and 3 of B D. 6 of A and 4 of B
The table below shows the marginal-utility schedules for goods A and B for a hypothetical consumer. The price of good A is $1 and the price of good B is $2. The income of the consumer is $11. Good A Good B Quantity MUA Quantity MU 1 10 1 16 2 9 2 14 3 8 3 12 4 7 4 10 5 6 6 5 567 8 6 4 7 7 18-Refer to the above table. What the utility-maximizing combination of goods A and B for this consumer: A. 3 of A and 1 of B B. 4 of A and 2 of B C. 5 of A and 3 of B D. 6 of A and 4 of B
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
None
Transcribed Image Text:The table below shows the marginal-utility schedules for goods A and B for a hypothetical
consumer. The price of good A is $1 and the price of good B is $2. The income of the
consumer is $11.
Good A
Good B
Quantity MUA
Quantity MU
1
10
1
16
2
9
2
14
3
8
3
12
4
7
4
10
5
6
6
5
567
8
6
4
7
7
18-Refer to the above table. What the utility-maximizing combination of goods A and B
for this consumer:
A. 3 of A and 1 of B
B. 4 of A and 2 of B
C. 5 of A and 3 of B
D. 6 of A and 4 of B
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
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)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
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-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education