Determine the marginal utility per dollar

Reference no: EM13183117

Assume that an individual consumes two goods, X and Y. The total utility of each good is independent of the rate of consumption of the other good. The price of X and Y are $40 and $60 respectively. Use the following table of total utilities to answer the following questions. Good Total Utility of X Total Utility of Y 1 20 45 2 38 78 3 54 108 4 68 135 5 80 159 6 90 180

a. The marginal utility of the fourth unit of Y is __________.

b. The marginal utility of the fifth unit of X is ___________.

c. The marginal utility per dollar spent on the third unit of X is __________.

d. The marginal utility per dollar spent on the second unit of Y is __________.

e. If the consumer has $420 to spend, ______ unit of X and _______ units of Y maximize utility subject to the budget constraint. Explain.

f. If the consumer has $220 to spend, _______ units of X and _______ units of Y maximize utility subject to the budget constraint.

Reference no: EM13183117

Questions Cloud

Compute the concentration of all ions in strong electrolytes : Calculate the concentration of all ions present in each of the following solutions of strong electrolytes.(a) 0.0214 mol of sodium phosphate in 10.5 mL of solutionchemical concentration Mcation concentration Manion concentration

Calculate the contribution margin ratio : The expected scrap value of the non-current assets at the end of year 4 Is R375000. The cost of capital Is 12% - on the basis of its Net Present Value (NPV), whether the Investment should be favourably considered.

Evaluate impact sociological theories-functionalism-conflict : Evaluate the impact the Sociological theories, Functionalism, Conflict, and Interactionism has by choosing one of the social institution selected.

Compute the external pressure that applied to seawater : calculate the external pressure that must be applied to seawater, 1.14 M total ion concentration at 10 degrees celcius if the maximum concentration allowed in the product water is 166 mg/L

Determine the marginal utility per dollar : Assume that an individual consumes two goods, X and Y. The total utility of each good is independent of the rate of consumption of the other good. The price of X and Y are $40 and $60 respectively. Use the following table of total u..

Explain how rate of chain reaction : essential to prevent uncontrolled raise of the rate of chain reaction in the nuclear power plant. Can you try to find additional information how rate of chain reaction

Would a merger between firms 1 and 2 likely to be challenged : Consider an industry made up of 8 firms.the market shares of 6 firms are 10% each. The market shares of the remaining two firms are 20% each. would a merger between firms 1 and 2 be likely to be challenged by the government

State the overall efficiency of a nuclear power plant : This phenomenon has some very practical applications in the power plants, particularly nuclear power plants. How does this help the overall efficiency of a nuclear power plant?

Explain the condition of soil crusting and soil compaction : Determine the term"soil structure" and indicate its revelance to land productivity. Describe the factor affecting soil structure stability. Explain the condition of "soil crusting" and soil compaction

User Account

All Pages