For Unit 4 Learning Journal, you will use the marginal utility formula to choose between two products. Catherine is having dinner at the Yellow Restaurant. She wants desert after eating her entree. She is trying to decide between a cookie or a slice of pie. The cost of a cookie is $5 and the cost of a slice of pie is $8. Refer to the Unit 4 Learning Journal Marginal Utility spreadsheet Compute the marginal utility for cookie and slice of pie Compute the marginal utility per dollar What is the utility maximizing choice for a cookie and slice of pie?
For Unit 4 Learning Journal, you will use the marginal utility formula to choose between two products. Catherine is having dinner at the Yellow Restaurant. She wants desert after eating her entree. She is trying to decide between a cookie or a slice of pie. The cost of a cookie is $5 and the cost of a slice of pie is $8. Refer to the Unit 4 Learning Journal Marginal Utility spreadsheet Compute the marginal utility for cookie and slice of pie Compute the marginal utility per dollar What is the utility maximizing choice for a cookie and slice of pie?
Chapter6: Consumer Choice And Demand
Section: Chapter Questions
Problem 1.3P
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Learning Journal prompt:
For Unit 4 Learning Journal, you will use the
Catherine is having dinner at the Yellow Restaurant. She wants desert after eating her entree. She is trying to decide between a cookie or a slice of pie. The cost of a cookie is $5 and the cost of a slice of pie is $8.
Refer to the Unit 4 Learning Journal Marginal Utility spreadsheet
- Compute the marginal utility for cookie and slice of pie
- Compute the marginal utility per dollar
- What is the utility maximizing choice for a cookie and slice of pie?
- Explain what the utility maximizing choice means.
- Discuss how you could use marginal utility to make consumer choices
Transcribed Image Text:H14
10 8
VIX✓ fx
B
1 Marginal Utility: Cookie
2 Quantity Consumed
3 1
42
5 3
64
7 5
8 6
97
12
13
14
A
Total Utility
18
34
49
61
71
79
84
87
с
Marginal Utility
18
D
per Dollar
E
F
Marginal Utility: Slice of Pie
Quantity Consumed Total Utility
16
30
42
51
60
68
74
76
1
2
3
4
5
6
7
8
16
G
Marginal Utility
H
per Dollar
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