None 2. Suppose that the total benefit that Firas gets from eating successivepieces of chocolate is as followsnumber of chocolate pieces68total exile20 863 55 45656560a. Calculate the marginal utility of each piece of chocolate Firas eats.NS. When does the law of diminishing marginal utility begin to apply?Why?3. We suppose that the marginal utility which a particular consumerobtains from consuming successive quantities ofApples and oranges are as comeapple quantityThe marginal utility of an apple, the quantity of oranges, the marginalutility of an orange2724211815th1296123454844403632282420a. If the price of apples is one dinars and the price of oranges is twodinars, and the income of the consumer who spends it onThese two goods is20 dinars, how many apples and oranges should he buyMaximizing his benefit?NS. If the income of the consumer who spends on the twocommodities is reduced to 12 dinars, what isAnd the oranges that the consumer must buy if he wants to maximizehis benefit?amount of dedicationshe

Since multiple questions are asked here, we will answer the first question for you. If you want any…

2. Suppose that the total benefit that Firas gets from eating successive pieces of chocolate is as follows number of chocolate pieces 1 2 3 4 5 6 7 8 total exile 20 8 63 55 45 65 65 60 a. Calculate the marginal utility of each piece of chocolate Firas eats. NS. When does the law of diminishing marginal utility begin to apply? Why?

2. Suppose that the total benefit that Firas gets from eating successive pieces of chocolate is as follows number of chocolate pieces 1 2 3 4 5 6 7 8 total exile 20 8 63 55 45 65 65 60 a. Calculate the marginal utility of each piece of chocolate Firas eats. NS. When does the law of diminishing marginal utility begin to apply? Why?

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter21: Demand: Consumer Choic

Section: Chapter Questions

Problem 1E

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Jeremy is deeply in love with Jasmine. Jasmine lives where cell phone coverage is poor, so he can either call her on the land-line phone for five cents per minute or he can drive to see her, at a roundâ€”trip cost of 2 in gasoline money. He has a total of 10 per week to spend on staying in touch. To make his preferred choice, Jeremy uses a handy utilimometer that measures his total utility from personal visits and from phone minutes. Using the values in Table 6.6, figure out the points 011 Jeremys consumption choice budget constraint (it may be helpful to do a sketch) and identify his utility-maximizing point.
Praxilla, who lived in ancient Greece, derives utility from reading poems and from eating cucumbers. Praxilla gets 30 units of marginal utility from her first poem 27 units of marginal utility from her second poem 24 units of marginal utility from her third poem, and so on, with marginal utility declining by three units for each additional poem. Praxilla gets six units of marginal utility for each of her next three cucumbers consumed, five units of marginal utility for each of her next three cucumbers consumed, four units of marginal utility for each of the following three cucumbers consumed, and so on, with marginal utility declining by one for every three cucumber consumed. A poem costs three bronze coins hut a cucumber costs only one bronze coin. Praxilla has 18 bronze coins. Sketch Praxillas budget set between poems and cucumbers, placing poems on the vertical axis and cucumbers on the horizontal axis. Start off with the choice of zero poems and 18 cucumbers, and calculate the changes in marginal utility of moving along the budget line to the next choice of one poem and 15 cucumbers. Using this step-by-step process based on marginal utility, create a table and identify Praxillas utilityâ€”maximizing choice. Compare the marginal utility of the two goods and the relative prices at the optimal choice to see if the expected relationship holds. Hint: Label the table columns: 1) Choice, 2} Marginal Gain from More Poems, 3) Marginal Loss from Fewer Cucumbers, 4) Overall Gain or Loss, 5) Is the previous choice Optimal? Label the table rows: 1) 0 Poems and 18 Cucumbers, 2) 1 Poem and 15 cucumbers, 3) 2 Poems and 12 cucumbers, 4) 3 Poems and 9 Cucumbers, 5) 4 Poems and 6 cucumbers 6) 5 Poems and 3 Cucumbers, 7) 6 Poems and 0 Cucumbers.