2. Total and marginal net utility The following table shows Cho's total utility from eating cakes. Quantity (Q) Total Utility (Cakes per month) (TU, $) Marginal Utility (MU, $) 0 0 1 10 2 18 3 25 4 29 5 30 6 26 If cakes were free, Cho would choose to eat cakes per month. Now (and for the rest of the question), assume that cakes cost $3 each. On the following graph, use the green points (triangle symbols) to plot Cho's total utility if she buys 0, 1, 2, 3, 4, 5, or 6 cakes per month. Then use the purple points (diamond symbols) to plot her total net utility (that is, total utility minus total expenditure) for those same quantities. Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically. Remember to plot from left to right. Hint: Don't forget to include what happens at 0 cakes!
2. Total and marginal net utility The following table shows Cho's total utility from eating cakes. Quantity (Q) Total Utility (Cakes per month) (TU, $) Marginal Utility (MU, $) 0 0 1 10 2 18 3 25 4 29 5 30 6 26 If cakes were free, Cho would choose to eat cakes per month. Now (and for the rest of the question), assume that cakes cost $3 each. On the following graph, use the green points (triangle symbols) to plot Cho's total utility if she buys 0, 1, 2, 3, 4, 5, or 6 cakes per month. Then use the purple points (diamond symbols) to plot her total net utility (that is, total utility minus total expenditure) for those same quantities. Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically. Remember to plot from left to right. Hint: Don't forget to include what happens at 0 cakes!
Chapter21: Demand: Consumer Choic
Section: Chapter Questions
Problem 1E
Related questions
Question
Note:-
- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.
- Answer completely.
- You will get up vote for sure.
![2. Total and marginal net utility
The following table shows Cho's total utility from eating cakes.
Quantity (Q)
Total Utility
(Cakes per month)
(TU, $)
Marginal Utility
(MU, $)
0
0
1
10
2
18
3
25
4
29
5
30
6
26
If cakes were free, Cho would choose to eat
cakes per month.
Now (and for the rest of the question), assume that cakes cost $3 each.
On the following graph, use the green points (triangle symbols) to plot Cho's total utility if she buys 0, 1, 2, 3, 4, 5, or 6 cakes per month. Then use
the purple points (diamond symbols) to plot her total net utility (that is, total utility minus total expenditure) for those same quantities.
Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically. Remember to plot
from left to right.
Hint: Don't forget to include what happens at 0 cakes!](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9483c275-020d-4f62-9fd3-18514a648ef3%2F66419532-fc42-426d-921c-8b29cef8b738%2Fl3h0v1d_processed.png&w=3840&q=75)
Transcribed Image Text:2. Total and marginal net utility
The following table shows Cho's total utility from eating cakes.
Quantity (Q)
Total Utility
(Cakes per month)
(TU, $)
Marginal Utility
(MU, $)
0
0
1
10
2
18
3
25
4
29
5
30
6
26
If cakes were free, Cho would choose to eat
cakes per month.
Now (and for the rest of the question), assume that cakes cost $3 each.
On the following graph, use the green points (triangle symbols) to plot Cho's total utility if she buys 0, 1, 2, 3, 4, 5, or 6 cakes per month. Then use
the purple points (diamond symbols) to plot her total net utility (that is, total utility minus total expenditure) for those same quantities.
Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically. Remember to plot
from left to right.
Hint: Don't forget to include what happens at 0 cakes!
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