You can buy pencils and pens. Each pencil costs $7.5 and each pen costs $5. Marginal utility for them is as follows: Pencil: 1. 8 2. 7.8 3. 6.8 4. 6.3 Pens: 1. 7 2. 6.1 3. 5.2 4. 4 How many of each item would you get to maximize utility?

You can buy pencils and pens. Each pencil costs $7.5 and each pen costs $5. Marginal utility for them is as follows: Pencil: 1. 8 2. 7.8 3. 6.8 4. 6.3 Pens: 1. 7 2. 6.1 3. 5.2 4. 4 How many of each item would you get to maximize utility?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

You can buy pencils and pens. Each pencil costs $7.5 and each pen costs $5.

Marginal utility for them is as follows:

Pencil:

1. 8

2. 7.8

3. 6.8

4. 6.3

Pens:

1. 7

2. 6.1

3. 5.2

4. 4

How many of each item would you get to maximize utility?

Definition Definition Satisfaction derived from the consumption of an additional unit of any commodity.

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