Suppose that you are given $60,000 to split between two people, Jane and Fred. The income and marginal utility for each of them isshown in the following table.Amount to Jane$5,000$ 7,000$ 9,000$ 11,000$ 13,000Amount to Fred$ 55,000$ 53,000$ 51,000$ 49,000$ 47,000MU of Jane's LastDollar Spent$95$ 90$85$80$75Amount to Fred = $MU of Fred's LastDollar Spent$ 85$ 90$95$ 100$ 105TInstructions: Enter your answers as a whole number.If you want to maximize their combined utility, how much of the $60,000 should go to Jane? How much should go to Fred?Amount to Jane = $A

Utility means satisfaction. The marginal utility is the utility derived from the consumption of last…

Suppose that you are given $60,000 to split between two people, Jane and Fred. The income and marginal utility for each of them is shown in the following table. Amount to Jane $5,000 $7,000 $9,000 $ 11,000 $ 13,000 Amount to Fred $ 55,000 $53,000 $ 51,000 $ 49,000 $ 47,000 MU of Jane's Last Dollar Spent Amount to Fred = $ $.95 $.90 $85 $80 $75 MU of Fred's Last Dollar Spent $85 $ 90 $95 $ 100 $ 105 Instructions: Enter your answers as a whole number. If you want to maximize their combined utility, how much of the $60,000 should go to Jane? How much should go to Fred? Amount to Jane = $

Suppose that you are given $60,000 to split between two people, Jane and Fred. The income and marginal utility for each of them is shown in the following table. Amount to Jane $5,000 $7,000 $9,000 $ 11,000 $ 13,000 Amount to Fred $ 55,000 $53,000 $ 51,000 $ 49,000 $ 47,000 MU of Jane's Last Dollar Spent Amount to Fred = $ $.95 $.90 $85 $80 $75 MU of Fred's Last Dollar Spent $85 $ 90 $95 $ 100 $ 105 Instructions: Enter your answers as a whole number. If you want to maximize their combined utility, how much of the $60,000 should go to Jane? How much should go to Fred? Amount to Jane = $

Principles of Economics, 7th Edition (MindTap Course List)

7th Edition

ISBN:9781285165875

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter21: The Theory Of Consumer Choice

Section: Chapter Questions

Problem 13PA

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