5. A child is given $8.80 of pocket money to be spent on either hard candies or chocolates.Chocolates cost 40 cents and hard candies 80 cents each. The marginal utilities derivedfrom each product are as shown in the following table:MU of HardCandies150Number ofMU ofItemsChocolates601501403401204301002080610707550820Refer to the above table. Which combination would give the child the maximum utility out ofspending $8.00?O 4 chocolates and 6 hard candiesO 6 chocolates and 8 hard candies2 chocolates and 4 hard candies3 chocolates and 5 hard candiesO 1 chocolate and 3 hard candiesN34 So7 8

Here, given information is: Price of chocolates: 40 cent Price of candles: 80 cent Total spending:…

A child is given $8.80 of pocket money to be spent on either hard candies or chocolates. Chocolates cost 40 cents and hard candies 80 cents each. The marginal utilities derived from each product are as shown in the following table: Number of MU of MU of Hard Items Chocolates Candies 60 150 2 50 140 3 40 120 4 30 100 20 80 6 10 70 7 5 50 8 20 Refer to the above table. Which combination would give the child the maximum utility out of spending $8.00? 4 chocolates and 6 hard candies 6 chocolates and 8 hard candies 2 chocolates and 4 hard candies

A child is given $8.80 of pocket money to be spent on either hard candies or chocolates. Chocolates cost 40 cents and hard candies 80 cents each. The marginal utilities derived from each product are as shown in the following table: Number of MU of MU of Hard Items Chocolates Candies 60 150 2 50 140 3 40 120 4 30 100 20 80 6 10 70 7 5 50 8 20 Refer to the above table. Which combination would give the child the maximum utility out of spending $8.00? 4 chocolates and 6 hard candies 6 chocolates and 8 hard candies 2 chocolates and 4 hard candies

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter6: Consumer Choices

Section: Chapter Questions

Problem 1SCQ: Jeremy is deeply in love with Jasmine. Jasmine lives where cell phone coverage is poor, so he can...

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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.
Explain why individuals make Choices that are directly on the budget constraint, rather than inside the budget constraint DI outside it.
Would you expect total utility to rise or fall with additional consumption of a good? Why?
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Table A – Faris Daily Consumption Dozens of Oysters Total Utility Marginal Utility per Day 1 60 104 3 134 4 152 5 160 Number of Total Utility Marginal Utility Root Beers per Day 1 40 70 3 94 4 114 5 128 Refer to Table A shows Faris's consumption on the oysters and root beers per day for a total five days; i. Compute Faris's marginal utility of for consumption of dozens of oyster and number of root beers per day ii. At what units per day Faris's Diminishing Marginal Utility sets in for consumption of dozens of oyster and number root beers per day. iii. Please briefly explain why Faris will experience the Diminishing Marginal Utility as he consumes more unit of oysters and root beers.
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- Cons X ∞ Chapter 6 - Cons X sments/632bc3fe081cee0063847766 00 Course Catalog - X ∞o Exam 1 - Chapter X = 6.2 How Changes X Chapter 6 - Consumer Choice OPEN OFirst Class Economy What is the Marginal Utility per Dollar for an economy ticket? Will Ari be better off booking a first class or an economy ticket? 00 Course Catalog - x + Ari needs to book a flight between Minneapolis and Los Angeles and has a choice between flying in first class or economy. A first class ticket costs $1140 and an economy ticket costs $200. The first class ticket generates $1430 of utility and the economy ticket generates $380 value of utility. Note: A purchase generating utility tells us the marginal utility of the good. What is the Marginal Utility per Dollar for a first class ticket? I 12 ☆ 9- la
Explain, Why is the marginal utility curve declining with incresed consumpition of burgers?
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?
Number of Sodas per day Total Utility Marginal Utility 1 20 2 35 3 47 12 4 10 5 7 Diminishing marginal utility sets in after the per day. O First Second O Third O Fourth Fifth
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A child is given $4.80 of pocket money to be spent on either hard candies or chocolates. Chocolates cost 40 cents and hard candies $1.20 each. The marginal utilities derived from each product are as shown in the following table. Number of Items MU of Chocolates MU of Hard Candies 1 2 3 4 5 6 7 8 60 50 40 30 20 10 5 150 140 120 100 80 70 50 20 Which combination would give the child the maximum utility out of spending $4.80? 6 chocolates and 2 hard candies 8 chocolates and 0 hard candies 3 chocolates and 3 hard candies 0 chocolates and 4 hard candies