Question

Suppose that Biff enters a hot dog eating contest. He enjoys hot dogs, so he gladly pays the $20 entry fee. Biff realizes there is very little chance that he will actually win the contest. He just likes the idea of being able to eat all the hot dogs he wants. The table below shows Biff's utility from eating hot dogs. .33 olnts Instructions: Enter your answers as a whole number. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. a. Use the table below and fill in the values for marginal utility. eBook Hot Dogs and Biff's Utility Total Utility Marginal Hot Dogs (utils) Utility (utils) 44 References 48 46 N001 44 41 b. If Biff is rational, and has no intention of winning the hot dog eating contest, what is the optimal number of hot dogs he will eat? What is the maximum level of utility Biff can reach from eating that number of hot dogs? Optimal number of hot dogs: Maximum utility:

Answer 1

VA (muna mags the unit The formula for mergine utility : . (mu. - Märgind utility Mun= Tun-Tunich 1 . Tun = total utility of the Tun Total utility of .(12 unit yot oledge Total utility I Merginal Cutils utility ៤ ។ snorur .nu b? . of Bill is rational he will consume till that unit where he gets positive utility. - he get positive utility for s hot dog, so optimal number of hot dogs. 15.] maximum utility : [48]