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mjb08a_m41_RETURNED-2 - Total and Marginal Utility for...

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Total and Marginal Utility for Doughnuts Doughnut Number 0 $- 1 $- 2 $- 3 $- 4 $- 5 $- 6 $- 7 $- 8 $- 9 $- 10 $- How much is that doughnut worth to you? (Utility) Total Utility (TU) = Sum of all Utility to this point (Total Joy) Marginal Utility = Δ Total Utility / Δ in Qty Net Utility = Marginal Utility - Price of Good Total Net Utility = Total Utility - Total Expenditure (Price X Qty) Price of Good 1 2 3 4 5 6 7 8 9 10 11 0 2 4 6 8 10 12 Total Net Utility Number of Doughnuts Total Net Utility
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Budget Line Example Scenario 1 Budget Qty Combinations Bands Cheese Price of Rubber Bands All Bands #DIV/0! 0 Price of Cheese All Cheese 0 #DIV/0! Scenario 2 Budget Qty Combinations Bands Cheese Price of Rubber Bands All Bands #DIV/0! 0 Price of Cheese All Cheese 0 #DIV/0! Scenario 3 Budget Qty Combinations Bands Cheese Price of Rubber Bands All Bands #DIV/0! 0 Price of Cheese All Cheese 0 #DIV/0! Scenario 4 Budget Qty Combinations Bands Cheese Price of Rubber Bands All Bands #DIV/0! 0 Price of Cheese All Cheese 0 #DIV/0! Scenario 5 Budget Qty Combinations Bands Cheese Price of Rubber Bands All Bands #DIV/0! 0 Price of Cheese All Cheese 0 #DIV/0!
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