Use the following information to answer the next 3 questions.Assume that an individual consumes two goods, X and Y. The total utility (assumed measurable)of each good is independent of the rate of consumption of other goods. The price of X is $5, andthe price of Y is $10.Units of the GoodTotal Utility of XTotal Utility of Y150400234957501359504170110052001220622513207245140082601450Question AWhat is the marginal utility of the third unit of good Y?A. 20B. 200C. 316.7D. 950Question BIf the consumer has $65 to spend on goods X and Y, what amount should be purchased of each inorder to maximize utility?A. 1 unit of good X and 6 units of good YB. 3 units of good X and 5 units of good YC. 3 units of good X and 7 units of good YD. 6 units of good X and 8 units of good YQuestion CIf the consumer has $110 to spend on goods X and Y, what optimal combination will the con-sumer choose?A. 6 units of good X and 8 units of good YB. 7 units of good X and 8 units of good YC. 8 units of good X and 7 units of good YD. 8 units of good X and 8 units of good Y

FOR QUESTION A:To determine the marginal utility of the third unit for Good Y, we will use the…

Answered: Use the following information to answer…

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 represents how Marco feels about chocolate candy bars. a. Fill in the missing values for total utility and marginal utility. Instructions: Enter your answers as a whole number. Chocolate Candy Bars and Marco's Utility Chocolate Candy Total Utility Bars (utils) 0 0 1 27 2 3 4 5 6 (Click to select) 60 ♦ 76 Marginal Utility (utils) 27 19 Suppose Marco currently has two candy bars. You tell Marco you will give him either a soda, which gives him 28 utils of happiness, or two additional candy bars. b. Which is he likely to prefer? 6 1
QUESTION 12 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 Marginal Utility 1 2 3 4 5 6 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?
Define Utility in your own words.What does it mean to have diminishing marginal utility?How do you calculate Marginal Utility? What is the formula?What is the utility maximizing rule? Describe the rule as well as state it mathematically.
2
Question 16 The following graph illustrates Tom's preferences for pizza slices and tacos in a given week: Figure 3-1 Quantity of Pizza Slices 20 10 18 17 16- 10 12 14 16 18 20 Quantity ofTacos Refer to Figure 3-1. Assume that Tom has an income of $100 per week, the price of a slice of pizza is $5, and the price of a taco is also $5. If Tom optimizes his purchases, he will choose to purchase which bundle of pizza slices and tacos? (Hint, consider which budget constraint Tom is on.) O A OB OC O O 111111000 14 IGN=
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Table 10-4 Steak & Cheese Steak & Cheese Grilled Chicken Grilled Chicken Quantity MU MU/P MU MU/P 1 40 10 30 15 2 32 8 24 12 3 20 5 16 8 4 12 3 12 6 5 6 1.5 8 4 6 2 0.5 4 2 Refer to Table 10-4. For steak and cheese sandwiches and grilled chicken sandwiches, the table contains the values of the marginal utility (MU) and marginal utility per dollar (MU/P) for Mabel Jarvis. Mabel has $14 to spend on steak and cheese sandwiches and grilled chicken sandwiches. Which of the following statements is false? 15-- A) If Mabel maximizes her utility, she will buy two steak and cheese sandwiches. B) The price of steak and cheese sandwiches is $4. The price of grilled chicken sandwiches is $2. C) We do not have enough information to determine how many sandwiches Mabel will buy to maximize her utility. D) If Mabel maximizes her utility, she will buy three grilled…
The table below shows the total utility from consuming different amounts of Grapefruits. Use the information below to calculate the Marginal Utility for each quantity. Quantity Total Utility 0 0 2 8 10 48 % 116 132 138 Marginal Utility 9-
QUESTION 1 Consider the following data from the table about a consumer. You have $16 to spend on dessert Price of Ice Cream = $2 per scoop Price of Cake: $4 per slice What is: A. The marginal utility adjusted for price for a quantity of 4 ice cream? B. What is the total utility of 5 slices of cake? C. What will be the optimal consumption bundle in this example _ Cake _Ice Cream QUESTION 1 1. Consider the following data from the table about a consumer. You have $16 to spend on dessert Price of Ice Cream =$2 per scoop Price of Cake: $4 per slice Quantity of TU Ice MU Ice MU/P Quantity Ice Cream Cream Cream TU MU MU/P of cake Cake Cake 1 4 1 10 2 3 2 8 3 2 3 6 4 1 4 4 5 0 5 2 The amount of total utility you'd enjoy at that level of consumption What is: A. The marginal utility adjusted for price for a quantity of 4 ice cream? B. What is the total utility of 5 slices of cake? C. What will be the optimal consumption bundle in this example Cream Cake
The following table shows the total utility that Antonio receives from consuming different number of apples per week. What is his marginal utility from consuming the second apple? Quantity of Apples 01234 Total Utility 0 20 34 44 50 34 14 44 06 10
Q6) Utility Ratio and Consumption Maximization A consumer downloads 3 movies and 4 apps per week. Suppose the price is $2 per movie and $2 per app, and the marginal utility for this consumption level is 6 for a movie and 8 for an app. Instructions: Round your responses to one decimal place. a. Calculate, show the formula, marginal utility per dollar. ..Per movie ......Per app b. Is this optimal consumption? c. If not, how should they change their consumption to maximize?
42.Jacob works while sipping mugs of green herbal tea. He does, however, know that after the fifth cup of tea, he will acquire a headache and be unable to concentrate. What does this say about Jacob and the utility he derives from cups of green tea?

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