Microeconomic Theory
12th Edition
ISBN: 9781337517942
Author: NICHOLSON
Publisher: Cengage
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Question
Chapter 3, Problem 3.15P
a
To determine
To know:
Calculation of benefit function.
b)
To determine
To know:
Calculation of benefit function when
c)
To determine
To plot:
Graphical representation of two possibilities.
d)
To determine
To know:
Graphical representation of initial endowment.
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Mylie’s total utility from singing the same song over andover is 50 utils after one repetition, 90 utils after tworepetitions, 70 utils after three repetitions, 20 utils afterfour repetitions, 250 utils after five repetitions, and 2200utils after six repetitions. Write down her marginal utilityfor each repetition. Once Mylie’s total utility beginsto decrease, does each additional singing of the songhurt more than the previous one or less than the previousone?
ceriuppose that Isaiah has a weekly fixed budget and spends it all on haircuts and ice cream. At his current combination
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A
C
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B
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No, because he can increase his total
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(b) the price of streams she buys. Show your work.
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