CRX4_101_Fall11

CRX4_101_Fall11 - Take-home Exercise 1 Prof. Potepan Econ...

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Take-home Exercise 1 Econ 101.01 – Introductory Microeconomics Prof. Potepan 28 September 2011 1. Suppose Georgia needs to decide how to spend her weekly entertainment budget of $100. She has only two entertainment options to choose between: going out dancing in nightclubs, or going out to the movies. Going out to clubs costs twice as much ($20 per club) as going out to movies ($10). Fill in the blanks for Georgia’s Marginal Utility and Marginal Utility per Dollar in the two tables below. Recall the following formulas: MU X = Δ U Δ X ; Marginal Utility per Dollar Spent = MU X P X Clubs Total Utility Marginal Utility Marginal Utility per Dollar 0 0 ____________ ____________ 1 60 ____________ ____________ 2 100 ____________ ____________ 3 130 ____________ ____________ 4 150 ____________ ____________ 5 160 Movies Total Utility Marginal Utility Marginal Utility per Dollar 0 0 ____________ ____________ 2 80 ____________ ____________ 4 140 ____________ ____________ 6 180 ____________ ____________ 8
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This note was uploaded on 10/12/2011 for the course ECON 101 taught by Professor Pgking during the Spring '08 term at S.F. State.

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CRX4_101_Fall11 - Take-home Exercise 1 Prof. Potepan Econ...

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