micro 7

micro 7 - Nate Neroni Microeconomics HW CH 7 1. Units...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Microeconomics HW CH 7 1. Units consumed Total utility Marginal utility 0 0 1 10 10 2 18 8 3 25 5 4 30 5 5 33 3 6 34 1 A. total utility is a constant rate between 25 and 30, a decreasing rate greater than 30 and an increasing rate less than 25. This is true because when looking at the chart marginal utility levels off at 5. B. I disagree because if they were to purchase 3 or 4 units they would be receiving the greatest combination of total utility and marginal utility. C. It is not possible because if they want at least some satisfaction, then they need to purchase some of the product. 2. She is not buying the utility maximizing combination of milk and bread since if she was then the marginal utilities from the last two products would be 100 units for bread, not 80 and 80 units for milk, not 70. 3. A. he will buy 4 units of A, 1 unit of B, I unit of D and 0 units of C. B. Ricardo will save 4 dollars C. 4. 2 units of x and 5 units of y. total utility would be 12.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 03/03/2008 for the course ECON 203 taught by Professor Al-sabea during the Fall '05 term at USC.

Page1 / 3

micro 7 - Nate Neroni Microeconomics HW CH 7 1. Units...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online