Microeconomics (2nd Edition) (Pearson Series in Economics)
2nd Edition
ISBN: 9780134492049
Author: Daron Acemoglu, David Laibson, John List
Publisher: PEARSON
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Question
Chapter 3, Problem 5P
a.
To determine
The changes in benefit value as the number of gallons purchased increases.
b.
To determine
The best number of gallons to purchase.
c.
To determine
The optimal number of gallons of gasoline after imposition of taxes.
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Students have asked these similar questions
Stan Moneymaker needs 15 gallons of gasoline to top off his automobile’s gas tank. If he drives an extra eight miles (round trip) to a gas station on the outskirts of town, Stan can save $0.10 per gallon on the price of gasoline. Suppose gasoline costs $3.90 per gallon and Stan’s car gets 25 mpg for in-town driving. Should Stan make the trip to get less expensive gasoline? Each mile that Stan drives creates one pound of carbon dioxide. Each pound of CO2 has a cost impact of $0.02 on the environment. What other factors (cost and otherwise) should Stan consider in his decision making?
Janelle loves sashimi. Her first piece of sashimi usually gives her a marginal benefit of $5. Each additional piece yields a
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The daily total utility per quantity of
consumption is shown in the figure. This
shows that the total utility of consuming 1
product is $1.60, the total utility of 2
products is $3.00, and so on.
Using marginal analysis, for which market
price (per unit) is the optimal daily quantity
of consumption 4 units?
Quantity (units)
1
2
3
4
5
Total utility
$1.60
$3
$4.20
$5.20
$6.00
a) $5.10
b) $0.90
c) $1.10
d) $1.30
e) $5.30
Chapter 3 Solutions
Microeconomics (2nd Edition) (Pearson Series in Economics)
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