Total Utility of Digital Apps per Digital Apps per Period Period (utils) 0 1 2 3 4 5 0 50.0 95.0 135.0 171.5 200.0 Portable Marginal Utility Marginal Utility (utils) per Dollars Spent Power Banks (price = $5.97) per Period 50.0 45.0 40.0 36.5 28.5 8.4 7.5 6.7 6.1 4.8 0 1 2 3 4 5 Total Utility of Portable Power Banks per Period (utils) 0 25 47 65 80 89 Marginal Marginal Utility Utility (utils) per Dollars Spent (price = $2.70) - 25 22 18 15 9 9.3 8.1 6.7 5.6 3.3 Consider the table above. Suppose the consumer's income is $26. Does the consumer spend all of her income if she purchases the optimal quantities of digital apps and portable power banks? The optimum quantity of digital apps purchased is and the optimum quantity of portable power banks purchased is. (Enter your responses as whole numbers.) Spending on digital apps is S and spending on portable power banks is S. (Enter your responses rounded to one decimal place.) Thus, total spending at the consumer optimum is S, which the consumer's income. (Enter your response as a whole number:)

Total Utility of Digital Apps per Digital Apps per Period Period (utils) 0 1 2 3 4 5 0 50.0 95.0 135.0 171.5 200.0 Portable Marginal Utility Marginal Utility (utils) per Dollars Spent Power Banks (price = $5.97) per Period 50.0 45.0 40.0 36.5 28.5 8.4 7.5 6.7 6.1 4.8 0 1 2 3 4 5 Total Utility of Portable Power Banks per Period (utils) 0 25 47 65 80 89 Marginal Marginal Utility Utility (utils) per Dollars Spent (price = $2.70) - 25 22 18 15 9 9.3 8.1 6.7 5.6 3.3 Consider the table above. Suppose the consumer's income is $26. Does the consumer spend all of her income if she purchases the optimal quantities of digital apps and portable power banks? The optimum quantity of digital apps purchased is and the optimum quantity of portable power banks purchased is. (Enter your responses as whole numbers.) Spending on digital apps is S and spending on portable power banks is S. (Enter your responses rounded to one decimal place.) Thus, total spending at the consumer optimum is S, which the consumer's income. (Enter your response as a whole number:)

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter17: Making Decisions With Uncertainty

Section: Chapter Questions

Problem 6MC

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