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

See similar textbooks

Related questions

Question

100%

Which combination would maximize Cloe’s total utility given her $4 budget?

Multiple Choice

6 chocolates and 2 hard candies

4 chocolates and 3 hard candies

2 chocolates and 4 hard candies

0 chocolates and 5 hard candies

Use the following information to answer the question below. Cloe is given $4 of pocket money to be spent on
either hard candies or chocolates. Chocolates cost 40 cents each and hard candies cost 80 cents each. The
marginal utilities derived from the consumption of each product are as shown in the following table.
Number of Items Marginal Utility of Chocolates
1
60
2
50
40
30
20
3
4
5
6
7
8
10
Multiple Choice
5
0
6 chocolates and 2 hard candles
4 chocolates and 3 hard candles
O 2 chocolates and 4 hard candles
Marginal Utility of Hard Candles
O chocolates and 5 hard candles
187288288
150
140
100
Which combination would maximize Cloe's total utility given her $4 budget?
80
70
50
20

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Follow-up Questions

Read through expert solutions to related follow-up questions below.

Follow-up Question

Use the following information to answer the question below. Cloe is given $4 of pocket money to be spent on either hard candies or chocolates. Chocolates cost 40 cents each and hard candies cost 80 cents each. The marginal utilities derived from the consumption of each product are as shown in the following table.

Number of Items	Marginal Utility of Chocolates	Marginal Utility of Hard Candies
1	60	150
2	50	140
3	40	120
4	30	100
5	20	80
6	10	70
7	5	50
8	0	20

What is Cloe’s total utility at her utility maximizing bundle?

Multiple Choice

870 utils
620 utils
80 utils
150 utils

Solution

by Bartleby Expert

SEE SOLUTION

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions