1. Suppose you are considering to make a decent holiday dinner. In this year, to be creative, you are thinking to put Copper River Salmon from Alaska (fillet) and fresh Atlantic Lobsters from Maine as entrée on the table. Use the information given, to finish the questions below. (1) The table following provides you total utility (U) and marginal (MU) from consuming Salmon and Lobster. Suppose your total utility of Salmon consumption (U1) is a function of the units (Q as pound or lbs.) of salmon consumed, as U1 = 400Q. Similarly, your total utility of Lobster (U2) has the form as units (Q as lbs.) of lobster consumed, which is U2 = Now fill the empty spots in the table using the information given. %3D 36Q + 40. %3D Total utility and marginal utility of Salmon and Lobster. Copper River Salmon Atlantic Lobster Q (Ibs.) U1 MU1 U2 MU2 1 20.00 20.00 8.72 8.72 3 4. 8 9. 10 (2) With a certain amount of budget, you are going to purchase both Salmon and Lobsters. To maximize your total satisfaction (utility), how you will make your decisions? If the market price of Copper River Salmon (fillet) is $85.00/lb., you find that your best option is to buy three pounds salmon and ten pounds of lobster. Then, how much is the price of lobster ($/lb.)? 67
1. Suppose you are considering to make a decent holiday dinner. In this year, to be creative, you are thinking to put Copper River Salmon from Alaska (fillet) and fresh Atlantic Lobsters from Maine as entrée on the table. Use the information given, to finish the questions below. (1) The table following provides you total utility (U) and marginal (MU) from consuming Salmon and Lobster. Suppose your total utility of Salmon consumption (U1) is a function of the units (Q as pound or lbs.) of salmon consumed, as U1 = 400Q. Similarly, your total utility of Lobster (U2) has the form as units (Q as lbs.) of lobster consumed, which is U2 = Now fill the empty spots in the table using the information given. %3D 36Q + 40. %3D Total utility and marginal utility of Salmon and Lobster. Copper River Salmon Atlantic Lobster Q (Ibs.) U1 MU1 U2 MU2 1 20.00 20.00 8.72 8.72 3 4. 8 9. 10 (2) With a certain amount of budget, you are going to purchase both Salmon and Lobsters. To maximize your total satisfaction (utility), how you will make your decisions? If the market price of Copper River Salmon (fillet) is $85.00/lb., you find that your best option is to buy three pounds salmon and ten pounds of lobster. Then, how much is the price of lobster ($/lb.)? 67
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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