The utility that Sarah receives by consuming fries (F) and cake (C) is given by U...
The utility that Sarah receives by consuming fries (F) and cake (C) is given by U = FC. Her MUF = C and MUC = F. Suppose fries cost $2 a unit, cake costs $3 a unit and Sarah has $24 to spend on fries and cake. Sarah will maximize utility by consuming:
a. 6 fries and 4 cakes
b. 8 fries and 3 cakes
c. 8 fries and 6 cakes
d. 12 fries and 0 cakes
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The utility that Sarah receives by consuming fries (F) and cake
(C) is given by U...
The utility that Julie receives by consuming food F and clothing C is given by U(F,...
The utility that Julie receives by consuming food F and clothing C is given by U(F, C) = FC. For this utility function, the marginal utilities are MUF = C and MUC = F. a) On a graph with F on the horizontal axis and C on the vertical axis, draw indifference curves for U = 12, U = 18, and U = 24. b) Do the shapes of these indifference curves suggest that Julie has a diminishing marginal rate...
3.10. The utility that Julie receives by consuming food F and clothing C is given by...
3.10. The utility that Julie receives by consuming food F and clothing C is given by U(F, C) = FC. For this utility function, the marginal utilities are MUF = C and MUC = F. a) On a graph with F on the horizontal axis and C on the vertical axis, draw indifference curves for U = 12, U = 18, and U= 24. b) Do the shapes of these indifference curves suggest that Julie has a diminishing marginal rate...
oncept: Equal MU per Dollar 1 The following table shows William's utility from consuming slices of...
oncept: Equal MU per Dollar 1 The following table shows William's utility from consuming slices of cake and cans of Coke Total Utility from Cake Marginal Utili from Last Slice … : Coke tyCans ofTotal Utility Slices of Cake Marginal Utility from Last Can from Coke 36 30 24 30 30 25 20 15 10 36 2 90 108 120 126 75 90 100 105 12 6 5 Suppose William has $8.60 per week to spend on cake and Coke....
The following table shows Ellie's utility from consuming slices of cake and cans of Pepsi. Suppose...
The following table shows Ellie's utility from consuming slices
of cake and cans of Pepsi.
Suppose Ellie has $12 per week to spend on cake and Pepsi and that
the price of a slice of cake is $2.00.
1.) Use the point drawing tool to plot Ellie's demand for Pepsi
at a price of $2.00. Label this point 'A'.
2.) Use the point drawing tool to plot Ellie's demand for Pepsi
at a price of $4.00. Label this point 'B'....
10. Susan achieves utility U from consuming / units of travel and c units of other...
10. Susan achieves utility U from consuming / units of travel and c units of other things” as Susan is currently consuming 27 units of travel and 64 units of other things. What is her marginal utility from an additional unit of travel? A. 12 B. 8/9 2/3 3/4
Is Alyssa currently maximizing her utility? 0 O No; she could buy less fruit and more...
Is Alyssa currently maximizing her utility? 0 O No; she could buy less fruit and more cheese, not spend any more money, and be better off. 0 O Yes; the marginal utility she receives from her last pound of cheese equals that of her last pound of fruit. 0 O No; she likes fruit and cheese more than other goods, so she should buy more of both. No; she could buy more fruit and less cheese, not spend any more...
3. Nora enjoys fish (F) and chips(C). Her utility function is U(C, F) = 2CF. Her...
3. Nora enjoys fish (F) and chips(C). Her utility function is U(C, F) = 2CF. Her income is B per month. The price of fish is Pf and the price of chips is P. Place fish on the horizontal axis and chips on the vertical axis in the diagrams involving indifference curves and budget lines. (a) What is the equation for Nora’s budget line? (b) The marginal utility of fish is MUf = 2C and the Marginal utility of chips...
Exhibit 1 Total utility for hamburgers, fries, and Cokes Total Uitility from Hamburgers Total Utility from...
Exhibit 1 Total utility for hamburgers, fries, and Cokes Total Uitility from Hamburgers Total Utility from Fries Total Utility from Coke 1 hamburger (100 utils) 2 hamburgers (180 utils) 3 hamburgers (240 utils) 1 order of fries (30 utils) 1 Coke (40 utils) 2 orders of fries (50 utils) 2 Cokes (60 utils) 3 orders of fries (60 utils) 3 Cokes (70 utils) 3- In Exhibit 1 assume that the price of utility of having a second order of fries?...
2- Assume the following utility function for cloth (C) and food (F) U = 200 +...
2- Assume the following utility function for cloth (C) and food (F) U = 200 + CF – 5F2 – 6 C2 and the consume wants to maximize her utility U, but has a limited budget of 24 unit. The price of cloth is 1 unit and the price of food is 2 unit. a- Use equal marginal principle approach to determine the optimal consumption point b- Approximately show the optimal consumption point in a figure
John has preferences for food F and clothing C described by a utility function U(F,C) =...
John has preferences for food F and clothing C described by a utility function U(F,C) = min (F, 2C). Suppose that food costs $1 a unit and that clothing costs $2 a unit. John has $12 to spend on food and clothing. (10 pts.) a) On a graph, draw indifference curves corresponding to u = 6, u = 10, u = 14. Make sure to label coordinates clearly. Using the graph, find the optimal choice of food and clothing. Let...
oncept: Equal MU per Dollar 1 The following table shows William's utility from consuming slices of cake and cans of Coke Total Utility from Cake Marginal Utili from Last Slice … : Coke tyCans ofTotal Utility Slices of Cake Marginal Utility from Last Can from Coke 36 30 24 30 30 25 20 15 10 36 2 90 108 120 126 75 90 100 105 12 6 5 Suppose William has $8.60 per week to spend on cake and Coke....
The following table shows Ellie's utility from consuming slices
of cake and cans of Pepsi.
Suppose Ellie has $12 per week to spend on cake and Pepsi and that
the price of a slice of cake is $2.00.
1.) Use the point drawing tool to plot Ellie's demand for Pepsi
at a price of $2.00. Label this point 'A'.
2.) Use the point drawing tool to plot Ellie's demand for Pepsi
at a price of $4.00. Label this point 'B'....
10. Susan achieves utility U from consuming / units of travel and c units of other things” as Susan is currently consuming 27 units of travel and 64 units of other things. What is her marginal utility from an additional unit of travel? A. 12 B. 8/9 2/3 3/4
Is Alyssa currently maximizing her utility? 0 O No; she could buy less fruit and more cheese, not spend any more money, and be better off. 0 O Yes; the marginal utility she receives from her last pound of cheese equals that of her last pound of fruit. 0 O No; she likes fruit and cheese more than other goods, so she should buy more of both. No; she could buy more fruit and less cheese, not spend any more...
Exhibit 1 Total utility for hamburgers, fries, and Cokes Total Uitility from Hamburgers Total Utility from Fries Total Utility from Coke 1 hamburger (100 utils) 2 hamburgers (180 utils) 3 hamburgers (240 utils) 1 order of fries (30 utils) 1 Coke (40 utils) 2 orders of fries (50 utils) 2 Cokes (60 utils) 3 orders of fries (60 utils) 3 Cokes (70 utils) 3- In Exhibit 1 assume that the price of utility of having a second order of fries?...
2- Assume the following utility function for cloth (C) and food (F) U = 200 + CF – 5F2 – 6 C2 and the consume wants to maximize her utility U, but has a limited budget of 24 unit. The price of cloth is 1 unit and the price of food is 2 unit. a- Use equal marginal principle approach to determine the optimal consumption point b- Approximately show the optimal consumption point in a figure
John has preferences for food F and clothing C described by a utility function U(F,C) = min (F, 2C). Suppose that food costs $1 a unit and that clothing costs $2 a unit. John has $12 to spend on food and clothing. (10 pts.) a) On a graph, draw indifference curves corresponding to u = 6, u = 10, u = 14. Make sure to label coordinates clearly. Using the graph, find the optimal choice of food and clothing. Let...
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