Question

1. Ka's utilities from playing Star Force (SF) and Retum of Ishtar (RI) at her local arcade are in the graphs below. The arcade charges Sl per game for any game), and she has enough money to play four games. If she plays 3 games of SF and 1 of RI (as shown by large points on the graphs below, has she acted rationally to maximize utility"? Complete the steps below to prove why or why not Total Total Utility Utility (from SF) (from RI) Utility (utils) Utility (utils) 0 1 2 3 4 Quantity of SF Games 0 1 2 3 4 Quantity of RI Games a. What is her total utility from playing 3 games of SF and 1 of RI? b. What is the marginal utility she gets from playing the 3 game of SF? From playing the 1" game of RI? c. Now, what combination of games (that she can afford) would give her the most utility? d. Explain in a sentence or two how your answer to part (C) illustrates the "rule" for utility maximization in the neoclassical model of consumption.

Answer 1

Let us schedule first make the margenal utility for both the games SF quantity MU quantity Tu MU 10 18 20 26 1 2 3 24 a Total lang nality of 3 games of SF & ARE boleto 20 + 12 132 Answeer looking at the schedule lat quantity 3 for SFM e 2 games of Sf and 2 games of RI

The rule of cutelity maximisation explains that a rational consumer will always maximine the utility deneved Кой К Солл (чиа си вкај доал и individual chooses !
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