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Chapter 20: Q. 3 (page 452)

Where possible, complete the missing cells in the table below.

Short Answer

Expert verified

The total utility of the first bag of french fries is 10(0+10=10), the second bag of french fries is 18(10+8=18), and the third bag of french fries is role="math" localid="1651853961635" 20(18+2=20). The marginal utility of th(21-21=0)e fourth french fries is1(21-20=1) and the bag of the fifth french fries is.

Step by step solution

01

Step 1- introduction

Total utility is the total utility that a consumer receives after consuming all goods. Marginal utility is the utility that a consumer receives after consuming additional good.

In the table above, you need to calculate the total and marginal utility of cheeseburgers and french fries. Marginal utility is equal to the change in total utility divided by the change in quantity.

02

Step 2- Explanation

The total utility of the third cheeseburger is 48(36+12=48), the fourth cheeseburger is (48+8=56), and the fifth cheeseburger is (56+4=60). The marginal utility of the first cheeseburger is role="math" localid="1651853457906" (20-0=20)and the marginal utility of the second cheeseburger is (36-20=16).

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Most popular questions from this chapter

Your classmate tells you that he is indifferent between three soft drinks and two hamburgers or two soft drinks and three hamburgers.

a. Draw a rough diagram of an indifference curve containing your classmate's consumption choices.

b. Suppose that your classmate states that he is also indifferent between two soft drinks and three hamburgers or one soft drink and four hamburgers, but that he prefers three soft drinks and two hamburgers to one soft drink and four hamburgers. Use your diagram from part (a) to reason out whether he can have these preferences.

You determine that your daily consumption of soft drinks is 3and your daily consumption of tacos is 4when the prices per unit are 50cents and $1, respectively. Explain what happens to your consumption bundle, and, after your consumption choices adjust, to the marginal utility of soft drinks and the marginal utility of tacos, when the price of soft drinks rises to 75cents.

Take a look at Table 20-1. Suppose that the price of each digital app rises to \( 5.97. At the same time, the price of each portable power bank falls to \) 2.70. Income remains unchanged at $ 26. Rework the marginal-utility-per-dollars-spent columns and round each amount to the nearest one-tenth. What are the quantities of digital apps and portable power banks now purchased by this consumer?

Refer to the table nearby. If the subscription price for a sports app is \(2per week, the subscription price of a game app is \)1per week, and a student has $9per week to spend, what quantities will she purchase at a consumer optimum?

As an individual consumes more units of an item, the person eventually experiences diminishing marginal utility. This means that to increase marginal utility, the person must consume less of an item. Explain the logic of this behavior using the example in Problem 20-1.
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