Economist NSers i need your help!

F

Flo_Rida_2016

Active member
Will give karma if you answer these questions.

1.Explain how a consumer

maximizes total utility. Use Marginal Utility Theory.

2.Mrs. Wilson buys

loaves of bread and quarts of milk each week at prices of $1 and 80 cents,

respectively. At present she is buying

these two products in amounts such that the marginal utilities from the last

units purchased of the two products are 80 and 70 utils, respectively. Is she buying the utility‑maximizing

combination of bread and milk? If not,

how should she reallocate her expenditures between the two goods?

Thanks!
 


1.Explain how a consumer

maximizes total utility. Use Marginal Utility Theory.

A consumer maximizes MU by calculating the MU for each number of each good and picking the right number of each where the MU is maximized.



2.Mrs. Wilson buys

loaves of bread and quarts of milk each week at prices of $1 and 80 cents,

respectively. At present she is buying

these two products in amounts such that the marginal utilities from the last

units purchased of the two products are 80 and 70 utils, respectively. Is she buying the utility‑maximizing

combination of bread and milk? If not,

how should she reallocate her expenditures between the two goods?

No she is not, if she buys more milk, her MU for milk will go up and be equal to the MU for bread.

MU = Marginal Utility
 
1. Stop going to war

2. Spend more instead of saving because your scared

3. Quit buying knock offs and fake shit off of the internet
 
the amount of debt compared to our gdp is the same if not less than debts from the past and debts around the world. but still
 
You must log in or register to reply here.
Back
Top