mjb08a_m41_RETURNED - Total and Marginal Utility for...

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Total and Marginal Utility for Doughnuts Doughnut Number 0 $- $- $- $- $- $0.50 1 $1.00 $1.00 $1.00 $0.50 $3.00 $0.50 2 $0.90 $1.90 $0.90 $0.40 $0.90 $0.50 3 $0.80 $2.70 $0.80 $0.30 $1.20 $0.50 4 $0.70 $3.40 $0.70 $0.20 $1.40 $0.50 5 $0.60 $4.00 $0.60 $0.10 $1.50 $0.50 6 $0.50 $4.50 $0.50 $- $1.50 $0.50 7 $0.40 $4.90 $0.40 $(0.10) $1.40 $0.50 8 $0.30 $5.20 $0.30 $(0.20) $1.20 $0.50 9 $0.20 $5.40 $0.20 $(0.30) $0.90 $0.50 10 $0.10 $5.50 $0.10 $(0.40) $0.50 $0.50 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 $- $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 Total Net Utility Number of Doughnuts Total Net Utility
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Budget Line Example Scenario 1 Budget $12.00 Qty Combinations Bands Cheese Price of Rubber Bands $3.00 All Bands 4 0 Price of Cheese
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This note was uploaded on 05/01/2010 for the course BUS 5529 taught by Professor Wood during the Spring '10 term at Abilene Christian University.

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mjb08a_m41_RETURNED - Total and Marginal Utility for...

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