Principles of Economics (12th Edition)
12th Edition
ISBN: 9780134078779
Author: Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 6, Problem 2.4P
To determine
How many nights Mr. T should spends for bowling and play billiards to maximize his utility.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
solve both the questions in the image provided.
Styles
15. Damian Matthews is busy. He allocates his free time between watching movies and working out at the gym.
The table below shows his utility from the number of times per week he watches a movie or goes to the gym.
Damien has 14 hours a week to spend on movies or the gym (think of hours like $ of income here). Each movie
takes 2 hours. Each gym trip takes 2 hours.
Q of Gym
Total
Q of Movie Total Utility
visits
Utility from
visits
from
Gym Visits
movies
100
1
60
180
110
3
240
3
150
4
280
4
180
310
190
330
195
340
7
197
a) What bundles of gym visits and movies can Damien consume if he spends 1) all his time in the gym or 2)
all his time watching movies?
b) Calculate the marginal utility of each gym visit'and movie. Then calculate the Marginal Utility per hour
of each activity.
c) How should he allocate his time to maximize his utility?
12
The table details the total utility that J.J. gets from going to see basketball and hockey games during a month. J.J. had $120 to spend. Calculate the marginal utility and the marginal utility per dollar spent for both basketball and hockey given that the price is $20 and $30 respectively. Based on your calculations:
how many basketball games would he attend?
how many hockey games would he attend?
Chapter 6 Solutions
Principles of Economics (12th Edition)
Knowledge Booster
Similar questions
- Think about a favorite thing you often buy or enjoy. It could be your favorite food, a favorite place to visit, a type of event, or something you make us part of a hobby. As part of this review you will create a chart ( just like the examples of total in marginal utility) showcasing the favorite item. Include the following information: How many you purchase or consume in the course of a day, week, or a month. Marginal utility of additional consumptions The total utility of all consumptions. Let’s assume that the largest utility you get from any one item is 20. Make it as interesting as you can by considering something that is important to you. Fill in the chart. arrow_forwardBecky needs to decide how many cups of coffee and pieces of cake she will buy for a meeting with an office mate. She estimates her total utility for different quantities of coffee and cakes below. A cup of coffee is $1.00, and each piece of cake is $0.50. Becky has a total of $3 to spend. What is Becky's total utility if she buys 1 cup of coffee and 4 pieces of cake? Cups of Coffee 1 2 3 4 5 6 Utility from Consumption Pieces of Cake 1 2 3 4 5 6 A B C D Total Utility from Cups of Coffee 33 56 79 Total Utility from Pieces of Cake 15 32 48 63 77 90 Total Utility of Different Consumption Bundles Consumption Bundle Cups of Coffee Pieces of Cake Total Utility 3 0 2 2 1 4 0 6arrow_forwardHow do your total and marginal utility change as you stay at home watching the same TV show (not necessarily the same episode) alone all day?arrow_forward
- 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 200arrow_forwardAlex has $18 per week in his entertainment budget. He splits his time between going to the movies and renting video games. Each movie costs $6 while each video game rental costs $3. The measured total utility of each of his activities is shown in the table below. What is Alex's utility maximizing point? Movies Total Utility Video Game Rentals Total Utility 0 0 0 0 1 40 1 30 2 75 2 55 3 105 3 76 4 130 4 92 5 160 5 106 6 114 7 116 Question 1 options: 2 movies, 2 video game rentals 0 movies, 6 video game rentals 5 movies, 7 video game rentals 1 movie, 4 video game rentalsarrow_forwardTom has a budget of $44 per week that he can spend on Ramen and/or steak burritos. Each burrito costs $10 and each bowl of Ramen is $6. Using the table below, what combination of these two goods will maximize Tom’s utility given his budget constraint?arrow_forward
- Aria consumes only two goods, food and clothing. The marginal utility of the last dollar she spends on food is 12, and the marginal utility of the last dollar she spends on clothing is 9. The price of food is $1.20/unit, and the price of clothing is $0.90/unit. Is Aria maximizing her utility?arrow_forwardKim has $24 per week in her entertainment budget. She splits her time between going to the movies and yoga classes. Each movie costs $8 while each yoga class costs $3. The total utility from each of these activities is set out in the table below. What is Kim's total utility maximizing point? Movies Total Utility Yoga Classes Total Utility 0 2 3 درا 4 5 0 40 75 105 130 160 0 1 2 3 4 1 6 7 8 Ruona classes 0 30 55 76 92 106 114 116 117arrow_forwardDescribe the point at which a consumer maximizes utility.arrow_forward
- On Sunday afternoon, you have arrived for brunch, where you can choose from only two types of dishes: snacks for $3 and drinks for $2. You have to spend $10, otherwise the money will disappear. Complete the tables below. Include the whole procedure and formulas. Explain what combination of dishes would give you the greatest total utility. why?arrow_forwardIf at a quantity consumed of 1 unit, total utility equals 25 and marginal utility equals 25, and at a quantity consumed of 2 units, total utility is unknown and marginal utility is 20, and at a quantity consumed of 3 units, total utility is 57 and marginal utility is unknown, what is marginal utility of the third unit?arrow_forwardAmy is currently spending all of her budget and she finds that the marginal utility per dollar from dresses is less than the marginal utility per dollar from hats. To maximize her utility, Amy should buy fewer dresses and hats. more hats and fewer dresses. more dresses and fewer hats. more dresses and hats. probably change her purchases but more information is needed to determine if she should buy more or fewer dresses and hats.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Exploring EconomicsEconomicsISBN:9781544336329Author:Robert L. SextonPublisher:SAGE Publications, Inc
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Exploring Economics
Economics
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:SAGE Publications, Inc
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning