Microeconomics (2nd Edition) (Pearson Series in Economics)
2nd Edition
ISBN: 9780134492049
Author: Daron Acemoglu, David Laibson, John List
Publisher: PEARSON
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Question
Chapter 3, Problem 3P
To determine
Type of optimization in the following cases:
(a) When John derives more benefits from watching a new batman movie than from watching a new Spiderman movie.
(b) When Marcia determines net benefit
(c) When Nikki jogs for
(d)When Reagan’s net benefit from purchasing a queen bed is
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Maria can purchase shirts for $22.00 each. She considers the benefit of one shirt to be $40.00, but with each additional shirt she purchases the benefit decreases by $5.
According to the Principle of Optimization at the Margin, Maria will purchase... shirts.
(Enter your response as a whole number.)
Assume you are spending your full budget and purchasing such amounts of X and Y that the marginal utility from the last units consumed is 40 and 20 utils respectively. Assume (a) the prices of X and Y are $8 and $4 respectively; (b) it takes 3 hours to consume a unit of X and 1 hour to consume a unit of Y; and (c) your time is worth $2 per hour. In equilibrium, if you included the opportunity cost of time then, you
should substitute X for Y until the marginal utility per hour is the same for both products.
should consume X and Y in the equal amounts.
should consume less of Y and more of X.
should consume less of X and more of Y.
Suppose that you can purchase satellite TV service for a fixed monthly fee of $79, no matter how many hours of TV you watch. Assuming that the principle of diminishing marginal benefit applies to watching TV, the optimal (efficient) number of hours of TV to watch per month is:
Group of answer choices
Zero
The number of hours where marginal benefits are zero.
The number of hours where marginal cost is lowest.
The number of hours where marginal benefits are maximized.
Chapter 3 Solutions
Microeconomics (2nd Edition) (Pearson Series in Economics)
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