Question

Utility Max.docx Page 3 of 3 2 Yaomin is an aficionado of the true baseball experience. Every week during baseball season, he budgets $128 for the game and hot dogs. Assume the price of a hot dog is $2.00 and the price of a baseball game is $60.00. Given the information below about Yaomin's preferences for hot dogs and baseball games, determine his optimal choice of games and hot dogs for each week of the baseball season. Show your work Total Marginal Marginal Baseball Utility Utility Per of Hot Dogs Hot Total Marginal MU/S Dogs Utility of Hot Dogs Games Utility Spent on of Utility of Dofiar per Week Games per Week Baseball Games Spent on Hot Dogs Baseball Games 0 1 40 400 2 60 2 700 3 76 3 850 4 86 4 950 91 1,000 1,025 5 6 93 6 Bulletin Board for Topic 1 Back to Topic Check on Opportunity Cost Mary Clifford posted Jun 8. 2019 1:12 PM Subscribe Please show your calculations for each. If the Price of groceries is $100 per bag and the price of a night of entertainment is $100, what is the opportunity cost of groceries in terms of nights of entertainment? If the Price of groceries increases to $125 per bag with no change in the price of nights of entertainment, what is the opportunity cost of groceries in terms of nights out? What is the opportunity cost of nights of entertainment in terms of bags of groceries?

Answer 1

MUnDmanginal uhuty of Hotelog PHD Prca Hotdog PHD $2 Marginal Utility of Baschull Pre o Beuebull bramer PA460 Pra

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Anol Also =128 2x 4 + 60x 2 Sah'streal Both condihony ae conside 5 units of Hotdeys and Next of asehall gomes unit MUHO PHD 2.S But 3x60-190 Budg et 128 Conthaint u mot sabisheal 2xSt tone this censumphon cannot be optimal Jhuu units Baseball gahy i the optimal consumphan 4 umi Hotdogs anel 2

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