Utility maximizing rule for consumers

Reference no: EM13316550

Please explain the utility maximizing rule for consumers. If you have $10, price of product A is $1, and price of product B is $2, and you bought 4 product A and 3 product B. In this situation, your total utility of 3 product A is 12, and that of 4 product A is 18, and your total utility of 2 product B is 15 and that of 3 product B is 33. Is your consumption of product A and product B maximizing your utility? If that is not, what is your recommendation?

Reference no: EM13316550

Questions Cloud

Describe the impact of extremely low birth weight : Discuss disparities related to ethnic and cultural groups relative to low birth weight infants and preterm births. Describe the impact of extremely low birth weight babies on family and society (short and long term, including economic considerations,..

Flexible benefits program and flexible benefits : Give an example of an organization that has flexible benefits program(s). Why or why not would organizations give flexible benefits to employees? Do you have flexible benefits? Explain

How much utility will the marginal dollar yield : Let MUa = z = 10 - x and MUb = z = 21 - 2y, where z is marginal utility per dollar measured in utils, x is the amount spent on productA, and y is the amount spent on product B. Assume that the consumer has $10 to spend on A and B--that is, x + y = 10..

Calculate accounting profit and economic profit : Define accounting profit and economic profit. When total sales revenue is $120,000, total costs $63,000, and total implicit costs is $33,000. Please calculate accounting profit and economic profit.

Utility maximizing rule for consumers : Please explain the utility maximizing rule for consumers. If you have $10, price of product A is $1, and price of product B is $2, and you bought 4 product A and 3 product B. In this situation, your total utility of 3 product A is 12, and that of 4 p..

Conflict management strategies for the current situation : Which of the available conflict management strategies is most appropriate for the current situation with David and James? Provide your rationale, including what factors you considered in making your selection.

Use loop to act as automatic withdrawal system : Use a loop to act as a automatic withdrawal system from a bank account. Assume the account has 1000 dollars to start with and money is taken from the account by the function: NewBalance = OldBalance - 3*n where n is the number of withdrawals that hav..

Most common multi-screening patterns : Which of these is found to be the most common multi-screening patterns among mobile shoppers Smartphone => PC => tablet Smartphone => tablet => PC Tablet => PC => smartphone PC => smartphone => tablet.

M-commerce revenues : Which of these statements about m-commerce revenues is TRUE?

User Account

All Pages