This week you have gone to two parties. Assume the total utility you gained from these parties is 100 utils. Then you go to a third party, and your total utility rises to 110 utils. What is the marginal utility of the third party attended per week? Given the law of diminishing marginal utility, what will happen to total utility and marginal utility when you go to a fourth party this week?
This week you have gone to two parties. Assume the total utility you gained from these parties is 100 utils. Then you go to a third party, and your total utility rises to 110 utils. What is the marginal utility of the third party attended per week? Given the law of diminishing marginal utility, what will happen to total utility and marginal utility when you go to a fourth party this week?
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter6: Consumer Choice Theory
Section: Chapter Questions
Problem 3SQP
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- This week you have gone to two parties. Assume the total utility you gained from these parties is 100 utils. Then you go to a third party, and your total utility rises to 110 utils. What is the
marginal utility of the third party attended per week? Given the law of diminishing marginal utility, what will happen to total utility and marginal utility when you go to a fourth party this week? - Consider the table below which lists John's marginal utility schedule for steak and hamburger meals:
Steak meals per month | MU of steak meals | Price per steak meal | Hamburger meals per month | MU of hamburger meals | Price per hamburger meal |
1 | 20 | $10 | 1 | 15 | $5 |
2 | 15 | 10 | 2 | 8 | 5 |
3 | 12 | 10 | 3 | 6 | 5 |
4 | 10 | 10 | 4 | 4 | 5 |
5 | 8 | 10 | 5 | 2 | 5 |
Given a budget of $45, how many steak and hamburger meals will James buy per month to maximize his total utility? What is the total utility realized?
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