mjb08a_m41_RETURNED

# 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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