How many books and movies would maximize

Assignment Help Microeconomics

Reference no: EM13724592

You are reviewing your monthly budget and determine you have $60.00 to spend on either books or movies each month. (Remember you must have whole numbers, not fractions) The books cost $8.00 and the movies cost $20.00. Put this into equation form.

Complete the following Total Utilities table.

Books
Total Utility	Quantity	Marginal Utility	Marginal Utility Per $
50	1
80	2
100	3
110	4
Movies
Total Utility	Quantity	Marginal Utility	Marginal Utility Per $
22	1
42	2
52	3
57	4

Using the equation created above, solve to locate four points and plot them on a budget constraint line. Create the graph in Excel and paste onto your Word document answering the questions below.

Write a one page response answering the following questions about your graph and tables:

How many books and movies would maximize your level of satisfaction given the budget of $60.00?
Are the charts above consistent with the Law of Diminishing Marginal Utility? Why or Why not?
What is the consumer surplus of purchasing three books?
If you were able to go to the matinee for movies at a price of $10.00 instead, how would this change the amount of books and movies you could purchase?

Reference no: EM13724592

Questions Cloud

Explain how a leader could use roadmap tool : Explain how a leader could use this tool in guiding an organizational change. Review several of your peers' posts. Respond to two peers who did not choose the same tool as you.

Discuss the types of service failures : Discuss the types of service failures? Describe recovery strategies that can be used in the event of a service failure?

Business process and functional modeling : Create a use-case diagram to include at least three (3) actors for the system described in this case through the use of graphical tools in Microsoft Word or Visio, or an open source alternative such as Dia. Note: The graphically depicted solution ..

Segmentation and target market analysis : Marketing Plan Assignment - Situation Analysis, Segmentation & Target Market Analysis, Competitive Analysis

How many books and movies would maximize : How many books and movies would maximize your level of satisfaction given the budget of $60.00 and are the charts above consistent with the Law of Diminishing Marginal Utility? Why or Why not?

Describe current human resource functions : Describe how the components of the Hawthorne study are incorporated in current human resource functions. What was the main idea behind this study? How have you been impacted by the components of this study in your current or past work setting

Identify the product target market at home : Assume the role of Marketing Manager. Identify the product's target market at home and in your stated foreign market

What is the value of the polar bear : Do you believe that polar bears are endangered as a species now or in the future? Why or why not and what is the value of the polar bear to the United States? To humanity?

Supervisor in a prominent organization : Self-esteem n relates to the way an individual views one's self. This belief can impact a person's degree of confidence or a level of insecurity. If you were a supervisor in a prominent organization, how might you deal with an employee who display..

User Account

All Pages