How do you maximize utility?
How do you maximize utility?
Homework Answers
When we consume a single type good, total utility is maximised when the marginal utility from the next unit consumed is zero. Or we can write it using a formula
MUx/Px=MUm
Where MUx=marginal utility of good x MUm= marginal utility of money and Px= price of good x
When multiple goods are being chosen, the condition for maximising utility is that a consumer equalises the marginal utility per pound spent. The condition for maximising utility is: MUA/PA = MUB/PB where: MU is marginal utility and P is price.
consumers want to do this: maximize savings maximize profit maximize utility maximize social welfare Jake has...
consumers want to do this: maximize savings maximize profit maximize utility maximize social welfare Jake has different consumption bundles he is choosing from that have the following total utilities. Which total utility does he prefer 125 150 75 ооо 100 A Moving to the next question prevents changes to this answer At a price of 5 what is the market demand? Quantity Demanded Ann Beth Price 3 Су 20 30 25 4 25 15 5 20 10 20 15 10...
how do you determine these answers? The following total utility data is for Pepsi and Pizza...
how do you determine these answers?
The following total utility data is for Pepsi and Pizza of Mary. Assume that the prices of Pepsi and Pizza are $3 and $4 respectively and that her consumer's income is $18. Units of Pepsi Units of Pizza Total Utility Total Utility 9 15 16 2 28 18 20 40 1. How many units of the two products will the consumer purchase to maximize utility given her income? What level of total utility does...
12) Why do consumers smooth consumption? A) To maximize today’s consumption B) To maximize lifetime consumption...
12) Why do consumers smooth consumption? A) To maximize today’s consumption B) To maximize lifetime consumption C) To maximize lifetime utility D) To minimize debt E) None of above
Consider my utility(U) function for Q: U 60Q-30? (a) At what Q do I maximize U?...
Consider my utility(U) function for Q: U 60Q-30? (a) At what Q do I maximize U? (b) Graph the U function and directly below it graph my demand function for Q. (c) At the market price of PM 32, compute my: Total Utility (TU); Expenses (outlays); and Consumer Surplus (CS)
Given: U(xi,x):x7x1 a) Write the Lagrangian given that you want to maximize utility subject to the...
Given: U(xi,x):x7x1 a) Write the Lagrangian given that you want to maximize utility subject to the budget b) Write the first order conditions for this problem constraint. c) What are the optimal amounts of x, and x2 to consume?
How do you think the Internet and mobile-enabled technology rates in terms of creating utility (time,...
How do you think the Internet and mobile-enabled technology rates in terms of creating utility (time, form, place, and possession)? Shop for a product at an online-only retailer of your choice. Then, compare the utility provided by that retailer to the utility provided by the experience of shopping non-electronically for the same product. In a post of 200 Words. Do not copy from other sources.
The benchmark models in microeconomic theory assume consumers and firms that act to maximize utility from...
The benchmark models in microeconomic theory assume consumers and firms that act to maximize utility from consumption expenditures and profits, respectively. Discuss whether you think that these assumptions are reasonable and evaluate some potential alternatives.
The benchmark models in microeconomic theory assume consumers and firms that act to maximize utility from...
The benchmark models in microeconomic theory assume consumers and firms that act to maximize utility from consumption expenditures and profits, respectively. Discuss whether you think that these assumptions are reasonable and evaluate some potential alternatives.
The benchmark models in microeconomic theory assume consumers and firms that act to maximize utility from...
The benchmark models in microeconomic theory assume consumers and firms that act to maximize utility from consumption expenditures and profits, respectively. Discuss whether you think that these assumptions are reasonable and evaluate some potential alternatives.
A consumer with a fixed income will maximize utility when each good is purchased in amounts such that the: A-...
A consumer with a fixed income will maximize utility when each good is purchased in amounts such that the: A- Marginal utility per dollar spent is maximized for each good B- Marginal utility of each good is maximized C-Marginal utility per dollar spent is the same for all goods D- Average utility per dollar spent is the same for all goods E- Total utility is the same for each good
consumers want to do this: maximize savings maximize profit maximize utility maximize social welfare Jake has different consumption bundles he is choosing from that have the following total utilities. Which total utility does he prefer 125 150 75 ооо 100 A Moving to the next question prevents changes to this answer At a price of 5 what is the market demand? Quantity Demanded Ann Beth Price 3 Су 20 30 25 4 25 15 5 20 10 20 15 10...
how do you determine these answers?
The following total utility data is for Pepsi and Pizza of Mary. Assume that the prices of Pepsi and Pizza are $3 and $4 respectively and that her consumer's income is $18. Units of Pepsi Units of Pizza Total Utility Total Utility 9 15 16 2 28 18 20 40 1. How many units of the two products will the consumer purchase to maximize utility given her income? What level of total utility does...
Consider my utility(U) function for Q: U 60Q-30? (a) At what Q do I maximize U? (b) Graph the U function and directly below it graph my demand function for Q. (c) At the market price of PM 32, compute my: Total Utility (TU); Expenses (outlays); and Consumer Surplus (CS)
Given: U(xi,x):x7x1 a) Write the Lagrangian given that you want to maximize utility subject to the budget b) Write the first order conditions for this problem constraint. c) What are the optimal amounts of x, and x2 to consume?
The benchmark models in microeconomic theory assume consumers and firms that act to maximize utility from consumption expenditures and profits, respectively. Discuss whether you think that these assumptions are reasonable and evaluate some potential alternatives.
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