Select the true or false for the following statement also give the explanation and support your answer with graphical presentation where necessary. Explanation is compulsory 3 to 6 line. If total utility at optimum level marginal utility is negative.
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Q1-Select the true or false for the following statement also give the explanation and support your answer with graphical presentation where necessary. Explanation is compulsory 3 to 6 line.
- If total utility at optimum level
marginal utility is negative.
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Solved in 2 steps
- Number of Sodas per day Total Utility Marginal Utilit 1 20 35 3 47 12 4 10 Refer to the table, The marginal utility of the second soda per day is L. (Answer should be in the form of numerical characters, e.g. 20) Enter your answer hereQuantity X TUx MUX MUX/Px Quantity Y TUy MUY MUy/Py 1 75 1 96 135 60 B 72 185 50 3 234 66 4 230 45 A 4 294 60 270 5 348 54 2.Quèstion 7 When total utility begins to decline marginal utility will be positive but it will decrease О Tue False
- Lee has calculated her marginal utility from buying pizza slices and soda (shown on the table in the worksheet) and wants to use these data to decide how to rationally spend the money she has. The price of pizza is $2.00 and the price of soda is $2.00 question 9 (a) given these prices and your worksheet calculations, what is the first product lee will buy? (b) would lee ever buy four slides of pizza? Why/why not? question 10Given the data in your worksheet, how many pizza slices and sodas lee should buy to maximize her total utility if she rationally spends her budget of 10.00? question 11 when the price of pizza changes, lee's MU/$P changes. If the price of pizza decreases to $1.50 and her budget decreases to $7.50, how many pzza slices and sodas lee should buy to maximize her total utility?- Some restaurants offer "all you can eat" meals. How is this practice related of diminishing marginal utility? What restrictions must the restaurant impose on the customer in order to make a profit?D Quantity Refer to the graph shown. Between points B and D, marginal utility is: increasing, and so total utility is falling. increasing, and so total utility is at its maximum. positive, and so total utility is falling. positive, and so total utility is increasing. Marginal Utility
- Graphical and Intuitive Optimization Consider a consumer who must allocate their available income between the consumption of two goods, Beer and Pizza. Their preferences over Beer and Pizza adhere to the usual assumptions we have made about preferences. The indifference curve map below reflects their preferences and the budget constraint reflects current income and prices. In the simplest terms possible, define or explain the term "Marginal Utility of Beer" (MUB). In the simplest terms possible, define or explain the term "Marginal Rate of Substitution of beer for pizza" (MRSBP). In the simplest terms possible, intuitively explain the meaning of MUB/PB, where PB represents the price of one unit of Beer.C D :. Quantity Refer to the graph shown. Between points C and D, marginal utility is: positive, and so total utility is increasing. positive, and so total utility is falling. O decreasing, and so total utility is at its maximum. decreasing, and so total utility is falling. Marginal Utility BUse the table below to answer the following question. Number of Units A) 95 B) 47.5 190 (D) 90 1 2 3 4 5 5 What is the marginal utility of the second unit? Total Utility 100 190 270 340 400 450
- a. Fill in the third column showing the marginal utility he gets from each additional scoop. Use a negative sign if appropriate. Quantity of Ice Marginal Utility of Total Utility Cream (scoops) Last Scoop Eaten 1 12 12 2 19 23 4 23 20Refer to the information provided in Table 6.1 below to answer the questions that follow. Number of Hamburgers per Day 1 2 3 4 Number of Sodas per Day 1 2 3 4 Total Utility 30 52 67 76 Total Utility 20 35 47 57 Marginal Utility Marginal Utility Question #33: Refer to Table 6.1. The marginal utility of the second soda per day is A) 10. B) 15. C) 35. D) 55. Question # 34: Refer to Table 6.1. The marginal utility of the third hamburger per day is A) 5. B) 15. C) 22.33. D) 119. Question # 35: Refer to Table 6.1. Diminishing marginal utility sets in after the A) first B) second C) third D) fourth Question # 36: Refer to Table 6.1. The total utility of five hamburgers per day is A) 80. B) 81. C) 96. D) indeterminate from this information. Question #37: Refer to Table 6.1. The total utility of five sodas per day is A) 35. B) 64. C) 92. D) indeterminate from this information. soda perday.The following table reflects the utility one receives from consuming a given product. Units Consumed Total Utility (TU) Marginal Utility (MU) 0 0 ------- 1 60 60 2 ____ 50 3 150 ____ 4 175 ____ 5 ____ 20 6 210 ____ Complete the table solving for the missing total utility or marginal utility values in each row. Total utility increases throughout the table. What rate does total utility increase? In other words, is it rising at an increasing rate, a…
