VIDEO MOVIES Marginal Number Total Utility Utility 1 2 3 4 5 6 50 99 139 171 182 190 Pieces of sushi: Total utility: Videos: SUSHI PIECES Number Total Utility 1 2 3 4 5 6 35 65 a) Complete the marginal utility columns in the table above. b) How should Christina allocate a budget of $18 to achieve utility maximization, and what will be her total utility? Videos: 85 95 103 109 Marginal Utility c) Suppose that the sushi shop offered a deal whereby Christina can buy a three-piece pack for $6. How will Christina allocate her budget, and what will be her total utility now? Pieces of sushi:

VIDEO MOVIES Marginal Number Total Utility Utility 1 2 3 4 5 6 50 99 139 171 182 190 Pieces of sushi: Total utility: Videos: SUSHI PIECES Number Total Utility 1 2 3 4 5 6 35 65 a) Complete the marginal utility columns in the table above. b) How should Christina allocate a budget of $18 to achieve utility maximization, and what will be her total utility? Videos: 85 95 103 109 Marginal Utility c) Suppose that the sushi shop offered a deal whereby Christina can buy a three-piece pack for $6. How will Christina allocate her budget, and what will be her total utility now? Pieces of sushi:

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Let us consider the case of Sabbir who has the option of consuming two products, peaches and oranges. In the initial situation, Sabbir consumes a specific quantity of peaches and a specific quantity of oranges. As a result, the value of marginal utility per pound spent on peaches is less than the value of marginal utility per pound spent on oranges. Which of the following options should be adopted by Sabbir if he wants to increase his total utility from the consumption of peaches and oranges compared to the initial situation? a. He should increase his expenditure on peaches and he should decrease his expenditure on oranges compared to the initial situation b. He should decrease his expenditure on peaches and he should increase his expenditure on oranges compared to the initial situation c. He should increase his expenditure on both peaches and oranges compared to the initial situation d. He should decrease his expenditure on both peaches and oranges compared to the initial situation
Mike is a jellyfish wrangler. In June and July he spent his budget on fish tanks and wet suits. Each fish tank cost $50 and each wet suit cost $100. At Mike's optimal choice, his marginal utility from the last fish tank purchased is 200. This means that his marginal utility from the last wet suit purchased is:
b) Diana has $6.00 to spend. She has the option to buy two goods: sandwiches and peppermints. Sandwiches cost $3.00 each, and peppermints cost $1.00 per pack. The table below shows the utility Diana derives from consuming sandwiches or peppermints at various levels of consumption. In the table below, compute and complete the table below for the marginal utility per dollar for each level of consumption. i. Peppermints Marginal Utility/ $ (price per each) Sandwiches Marginal Utility Marginal utility/ $ (price per each) Marginal Utility Units purchased 1 9 15 9 3 4 4 n/a n/a 1 ii. Briefly explain how Diana should spend the first $3.00.
Which of the following statement is TRUE Group of answer choices As the consumption of a good increases, marginal utility rises, but total utility falls. As the consumption of a good increases, total utility falls and marginal utility falls. As the consumption of a good increases, total utility rises, but marginal utility falls.
am. 113.
Mylie's total utility from singing the same song over and over is 70 utils after one repetition, 110 utils after two repetitions, 140 utils after three repetitions, 160 utils after four repetitions, 120 utils after five repetitions, and 60 utils after six repetitions, as shown in the table below. a. Write down her marginal utility for each repetition. Instructions: Enter your answers as a whole number. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. Repetitions 0 1 2 3 4 5 6 Total Utility Marginal Utility 0 70 110 140 160 120 60 b. Once Mylie's total utility begins to decrease, does each additional singing of the song hurt more than the previous song or less than the previous song? O More than the previous song O Less than the previous song
The following table describes the utility that Greta gets from consuming Shiner Bock. Her marginal utility is maximized ___.
Refer to the table below. If the subscription price for a sports app is $2 per week, the subscription price of a game app is $1 per week, and a student has $9 per week to spend, what quantities will she purchase at a consumer optimum? Quantity of Sports Apps per week Marginal Utility (utils) Quantity of Game Apps per Week Marginal Utility (utils) 1 1,200 1 1,700 2 1,000 2 1,400 3 800 3 1,100 4 600 4 800 5 400 5 500 6 100 6 200
Suppose Al is currently consuming five movies and two concerts per month. If his utility function is given by U = 15MC, where Mrepresents the number of movies seen and C represents the number of concerts attended, Al's total utility is equal to: 75 15 150 10 30
Gabriella obtains utility from consuming granola bars and cappuccino. The following table shows the total utility (TU) she obtains from consuming different amounts of the two goods. The price of a granola bar is $3 and the price of a cup of cappuccino is $2. She has allocated $9 to spend on granola bars and cappuccino. 1. Complete the table by calculating the marginal utility (MU) and the MU per dollar spent on each granola bar and cup of cappuccino. 2. What is Gabriella’s optimal consumption bundle of granola bars and cups of cappuccino?
There are only two brands of tennis balls Tom purchases: "Wilson" and "Penn." The more he purchases of a ball, the lower the marginal utility of that ball. He spends all of his income and his marginal utility of a "Wilson" is 6 and his marginal utility of an "Penn" is 12. The price of a "Wilson" ball is $1 and the price of an "Penn" is $2. Which of the statements is true based on the above information? Question 19 options: Tom could increase his satisfaction by a) trading "Wilson" for "Penn." In equilibrium, Tom must give up b) three "Penn" balls for two "Wilson" balls. Tom can increase his satisfaction by c) doing nothing Tom would be willing to give up two d) "Penn" balls for one "Wilson" ball.