Introduction to Microeconomics(assignment#6)

Introduction to Microeconomics(assignment#6) - Assignment#6...

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1 Assignment #6 Introduction to Microeconomics Student Name: Student #: Chapter10 (p.264-265) Q3. Brenda likes to have bagels and coffee for breakfast. The accompanying table shows Brenda’s total utility from various consumption bundles of bagels and coffee. Consumption bundles Total utility (utils) Quantity of bagels Quantity of coffee (cups) 0 0 0 0 2 28 0 4 40 1 2 48 1 3 54 2 0 28 2 2 56 3 1 54 3 2 62 4 0 40 4 2 66 Suppose Brenda knows she will consume 2 cups of coffee for sure. However, she may choose to consume 0, 1, 2, 3, or 4 bagels. a. Calculate Brenda’s marginal utility from bagels as she goes from consuming 0 bagels to 1 bagel, from 1 bagel to 2 bagels, from 2 bagels to 3 bagels, and from 3 bagels to 4 bagels. Answer: Consumption bundles Total utility (utils) Marginal utility per bagel (utils) Quantity of bagels Quantity of coffee (cups) 0 2 28 20 1 2 48 8 2 2 56 6 3 2 62 4 4 2 66
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2 If Brenda consumes 2 cups of coffee, the consumption bundles that are relevant are those table above. The first two columns are the bundles, and the third column shows the total utility of each bundle. The fourth column calculates her marginal utility of bagels. b. Draw Brenda’s marginal utility curve of bagels. Answer:
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This note was uploaded on 02/20/2010 for the course BBA BBA101 taught by Professor Everyon during the Three '10 term at University of New England.

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Introduction to Microeconomics(assignment#6) - Assignment#6...

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