2. In the following examples, state how you would use the principle of marginal analysis (and idea ofdiminishing marginal utility) to make a decision. Make sure to include at least one marginal cost andone marginal benefit. Use at least two sentences in your response.| a. Deciding how many Krispy Kreme doughnuts to eat in one sitting.b. Deciding how many AP classes for the 2021-2022 school year.

Marginal Analysis refers to the analysis that use to assist the individuals in allocating their…

Answered: 2. In the following examples, state how…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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1. Muhammad enjoys going to the aquarium (x) and playing basketball (y). His preferences on x and y are described by his utility function: U(x, y) = 100x23y3. He has a budget of £120 per week to spend on playing basketball and going to the acquarium. Knowing that p,=10 and py=10: ,2/3,1/3 (A) Find the optimal combination of x and y so that Muhammad maximizes his utility subject to the budget constraint. Show this graphically. (B) Consider now that the price of going to the aquarium increases to £20, the price of playing basketball is now £15 and the income did not change. How does this modify Muhammad's optimal bundle? Show this graphically. (C) Compare the optima in (A) and (B): has the valuation of y in terms of x changed? Explain.
5. Sheila and Bruce are taking a canoe trip. Sheila brought 10 boxes of peanuts (x) and 15 bags of chips (y). Sheila's utility function is U*(x,y) = lnvx*+ Invy°. Bruce also brought 20 boxes of peanuts and 5 bags of chips. Bruce's utility function is UB(x.y) = min[x', y'I. a) Illustrate the endowment point and draw a sample set of indifference curves through the endowment point. b) If Sheila and Bruce trade what will be the pattern of mutually beneficial trade? c) If the terms of trade are the number of bags of chips (y) per box of peanuts (x) then what is the largest value that these terms can be for a mutually beneficial trade in this economy? d) Find one mutually beneficial trade where the terms of trade are 1 bag of chips (y) per 2 boxes of peanuts (x). Suppose that Sheila and Bruce set up two competitive markets for peanuts and chips. Below you will show that if the price of peanuts (x) is $1 and the price of chips (y) is $2 then the markets for both peanuts and chips will clear.…
Assume a monopolist faces the demand schedule given below and a constant marginal cost of $2 for each unit of output. Fill in the total and marginal revenue amounts in the table. Part 2 To maximize profits, this monopolist would produce_______ units of output at a price of $ ________ per unit.
help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all working
1. Doreen is looking for a flat to rent in Brighton. a. In choosing a flat, she cares about two characteristics: the number of bedrooms (x), and the number of bathrooms (y). Her utility function is U(x,y) = min(x, 2y). She has £1000 to spent on rent per month. The rental price per bedroom in Brighton is £400, and the price per bathroom is £200. (For example, a flat with three bedrooms and two bathrooms would rent for £1600 per month.) How many bedrooms and bathrooms does Doreen choose to rent optimally? b. Doreen now needs to furnish her flat. She has £500 to spend. However, she would also like to buy some clothes for her new job. The cost of furniture f is £50 per unit and the cost of clothing c is £20 per unit. Her utility function over furniture and clothing is U(f.c) = f0.3c0.7. How much does she spend in total on furniture, and on clothing? c. The local furniture shop runs a flash sale of 50% off, on all prices. How much does Doreen now spend on furniture, and on clothing?…
Can you help me solve this question step by step, please?
make sure to include the formulas (to solve the problems), the steps of your calculations, and the explanation of your answers.
The table below shows the marginal benefit that Dan derives by consuming different quantities of tacos and soda .The price of a taco is $3 and the price of soda is $1. Quantity sodas Tacos Marginal benefits ($) Marginal benefits($) 1 10 18 2 8 12 3 6 6 4 4 3 5 2 1 6 1 0.6 Refer to the table above.If Dan consumes 3 tacos and 0 sodas -not necessary his optical choice- how much consumer surplus is he enjoying? a) $ 24 b) $ 27 c) $ 9 d) $6
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ECON Questions 5, 6, 7, and 8 How to solve and answer these economics questions showed in the screenshot?

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