ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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The table below shows the marginal utility from consuming mini pizzas and sodas.  If pizzas and soda are the only goods and the price of a mini pizza is $1 and the price of a soda is $.50, how many of each will maximize utility if you have $4 for lunch?

The table below shows the marginal utility from consuming mini pizzas and sodas. If pizzas and soda are the only goods and the price of a mini pizza is $1 and the price of a soda is $.50, how many of
each will maximize utility if you have $4 for lunch?
Part A
Number of Pizzas
Marginal Utility
Number of Sodas
Marginal Utility
1
10
1
6.
9.
1
4
1
0.
1. Calculate the marginal utility per dollar for sodas. Show your work.
2. List each sequential decision made to maximize utility.
3. How many pizzas and sodas maximize utility?
Part B
The owner of Primary Pizzas surveys customers and find that at the current price of $18/pizza, only 4% of customers want to buy a specialty pizza. They also discover that if the price were reduced to
$14/pizza, 45% of customers would want to buy a pizza. How do you think the business should respond to this information? Why?
4.
5.
4,
3
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Transcribed Image Text:The table below shows the marginal utility from consuming mini pizzas and sodas. If pizzas and soda are the only goods and the price of a mini pizza is $1 and the price of a soda is $.50, how many of each will maximize utility if you have $4 for lunch? Part A Number of Pizzas Marginal Utility Number of Sodas Marginal Utility 1 10 1 6. 9. 1 4 1 0. 1. Calculate the marginal utility per dollar for sodas. Show your work. 2. List each sequential decision made to maximize utility. 3. How many pizzas and sodas maximize utility? Part B The owner of Primary Pizzas surveys customers and find that at the current price of $18/pizza, only 4% of customers want to buy a specialty pizza. They also discover that if the price were reduced to $14/pizza, 45% of customers would want to buy a pizza. How do you think the business should respond to this information? Why? 4. 5. 4, 3
1,
2)
10
2.
4,
5.
2.011 X
C Sign X b Ansv x
L Calci X
V 1.1 C X
wher X
A Tal X
X zino A
nttps://virtualvirginia.instructure.com/courses/11024/assignments/797869
K uea) O
Economics & Personal Finance
6.8403060RR
XK 6468535
APPLICATION:
2.01b Homework
The table below shows the marginal utility from consuming mini pizzas and sodas. If pizzas and soda are the only goods and the price of a mini pizza is $1 and the price of a soda is $.50, how many of
each will maximize utility if you have $4 for lunch?
Part A
Number of Pizzas
Marginal Utility
Number of Sodas
Marginal Utility
1.
6.
2.
5.
4
1.
4.
0.
1. Calculate the marginal utility per dollar for sodas. Show your work.
2. List each sequential decision made to maximize utility.
3. How many pizzas and sodas maximize utility?
Part B
The owner of Primary Pizzas surveys customers and find that at the current price of $18/pizza, only 4% of customers want to buy a specialty pizza. They also discover that if the price were reduced to
$14/pizza, 45% of customers would want to buy a pizza. How do you think the business should respond to this information? Why?
How to complete and submit this assignment
1. Click the Submit Assignment button on this page.
2. Type your response(s) in the text box(es) provided.
3. When you've finished, click Submit.
F4
F5
F7
F8
F10
PrtSc
Del
Home
Scr Lk
asned
SysRq
%
4 5€
Backsp:
6 8
expand button
Transcribed Image Text:1, 2) 10 2. 4, 5. 2.011 X C Sign X b Ansv x L Calci X V 1.1 C X wher X A Tal X X zino A nttps://virtualvirginia.instructure.com/courses/11024/assignments/797869 K uea) O Economics & Personal Finance 6.8403060RR XK 6468535 APPLICATION: 2.01b Homework The table below shows the marginal utility from consuming mini pizzas and sodas. If pizzas and soda are the only goods and the price of a mini pizza is $1 and the price of a soda is $.50, how many of each will maximize utility if you have $4 for lunch? Part A Number of Pizzas Marginal Utility Number of Sodas Marginal Utility 1. 6. 2. 5. 4 1. 4. 0. 1. Calculate the marginal utility per dollar for sodas. Show your work. 2. List each sequential decision made to maximize utility. 3. How many pizzas and sodas maximize utility? Part B The owner of Primary Pizzas surveys customers and find that at the current price of $18/pizza, only 4% of customers want to buy a specialty pizza. They also discover that if the price were reduced to $14/pizza, 45% of customers would want to buy a pizza. How do you think the business should respond to this information? Why? How to complete and submit this assignment 1. Click the Submit Assignment button on this page. 2. Type your response(s) in the text box(es) provided. 3. When you've finished, click Submit. F4 F5 F7 F8 F10 PrtSc Del Home Scr Lk asned SysRq % 4 5€ Backsp: 6 8
Expert Solution
Check Mark
Step 1

We have giver marginal utility table of Pizza and soda,

The price of mini pizza =1 and the price of soda is $0.5

Total income for lunch =$4 

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