Calculate max marginal utility from windsurfing

Reference no: EM132114736

Question: How does Max's demand for snorkelling equipment change when the price of windsurfing equipment falls? What is Max's cross elasticity of demand for snorkelling with respect to the price of windsurfing? Are windsurfing and snorkelling substitutes or complements for Max?

Problem: Max has $35 a day to spend on windsurfing and snorkelling and he can spend as much time as he likes doing them. The price of renting equipment for windsurfing is $10 an hour and for snorkelling is $5 an hour. The table shows the total utility Max gets from each activity.

Calculate Max's marginal utility from windsurfing at each number of hours per day. Does Max's marginal utility from windsurfing obey the principle of diminishing marginal utility?

Reference no: EM132114736

Questions Cloud

List the combinations of yogurt and berries : Jerry has $12 a week to spend on yogurt and berries. The price of yogurt is $2, and berries are $4 a box. List the combinations of yogurt and berries.

What are the critical issues we must think about : What are the Critical Issues we must think about while designing a Lexical Scanner?

How do jerry consumption possibilities change : Jerry has $12 a week to spend on yogurt and berries. The price of yogurt is $2, and berries are $4 a box. How do Jerry's consumption possibilities change.

Create the delete customer and delete product procedures : INF60014 Database Systems Stored Procedures & Stored Functions - Create these stored procedures/function using SQL Developer

Calculate max marginal utility from windsurfing : Calculate Max's marginal utility from windsurfing at each number of hours per day. Does Max's marginal utility from windsurfing obey the principle.

Lab Report - Air recirculation through a duct-room system : Lab Report Assignment - Air recirculation through a duct-room system. Discuss the possible reasons that lead to errors in the measurement

Discuss the fact that the men of greece have not been home : Lysistrata is the name of the play, because she gathers the women to discuss the fact that the men of Greece haven't been home in a long time.

Describe how the reforms undertaken : Describe how the reforms undertaken during the president's tenure responded to populist demands.

What does the fact that fans eat less at subsequent games : What conflict might exist between utility maximization and setting "personal records" for eating? What does the fact that fans eat less at subsequent games.

User Account

All Pages