Microeconomics (13th Edition)
13th Edition
ISBN: 9780134744476
Author: Michael Parkin
Publisher: PEARSON
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Question
Chapter 8, Problem 19APA
To determine
Maximizing utility.
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would you rather maximize your total utility or your marginal utility?
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How should I spend my money in order to maximize my utility?”
Chapter 8 Solutions
Microeconomics (13th Edition)
Ch. 8.1 - Prob. 1RQCh. 8.1 - Prob. 2RQCh. 8.1 - Prob. 3RQCh. 8.1 - Prob. 4RQCh. 8.2 - Prob. 1RQCh. 8.2 - Prob. 2RQCh. 8.2 - Prob. 3RQCh. 8.2 - Prob. 4RQCh. 8.3 - Prob. 1RQCh. 8.3 - Prob. 2RQ
Ch. 8.3 - Prob. 3RQCh. 8.3 - Prob. 4RQCh. 8.3 - Prob. 5RQCh. 8.4 - Prob. 1RQCh. 8.4 - Prob. 2RQCh. 8.4 - Prob. 3RQCh. 8.4 - Prob. 4RQCh. 8 - Prob. 1SPACh. 8 - Prob. 2SPACh. 8 - Prob. 3SPACh. 8 - Prob. 4SPACh. 8 - Prob. 5SPACh. 8 - Prob. 6SPACh. 8 - Prob. 7SPACh. 8 - Prob. 8SPACh. 8 - Prob. 9SPACh. 8 - Prob. 10SPACh. 8 - Prob. 11SPACh. 8 - Prob. 12SPACh. 8 - Prob. 13SPACh. 8 - Prob. 14SPACh. 8 - Prob. 15SPACh. 8 - Prob. 16APACh. 8 - Prob. 17APACh. 8 - Prob. 18APACh. 8 - Prob. 19APACh. 8 - Prob. 20APACh. 8 - Prob. 21APACh. 8 - Prob. 22APACh. 8 - Prob. 23APACh. 8 - Prob. 24APACh. 8 - Prob. 25APACh. 8 - Prob. 26APACh. 8 - Prob. 27APACh. 8 - Prob. 28APACh. 8 - Prob. 29APACh. 8 - Prob. 30APACh. 8 - Prob. 31APACh. 8 - Prob. 32APA
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Similar questions
- What is the trend of the total utilityarrow_forwardElapsed time (in minutes) 30 60 90 120 150 Total utility of playing video games 20 45 63 78 83 40 62 72 76 76 Total utility of swimming ▸ Jenny pays $5 per hour to use the local swimming pool. What is her marginal utility per dollar for the first half hour of swimming?arrow_forwardAt what point does a consumer maximize utility?arrow_forward
- Complementary goods are goods that are closely related. Choose the example below that best describes complementary goods. Sally planned to eat lunch at McDonald's, but it was closed. She decided to go to Wendy's for lunch instead. Tom went to the store to buy groceries. He had cherry soda on his list, but he decided to buy lemon-lime soda instead. The lemon-lime soda was on sale, so it was a better deal. In the spring, the demand for tennis rackets goes up. This causes the potential demand of tennis balls to also go up. December is the most popular month of the year to bake cookies. This causes the demand for butter to go up and the cost of margarine to go down.arrow_forwardThink about a favorite thing you often buy or enjoy. It could be your favorite food, a favorite place to visit, a type of event, or something you make us part of a hobby. As part of this review you will create a chart ( just like the examples of total in marginal utility) showcasing the favorite item. Include the following information: How many you purchase or consume in the course of a day, week, or a month. Marginal utility of additional consumptions The total utility of all consumptions. Let’s assume that the largest utility you get from any one item is 20. Make it as interesting as you can by considering something that is important to you. Fill in the chart. arrow_forwardAria consumes only two goods, food and clothing. The marginal utility of the last dollar she spends on food is 12, and the marginal utility of the last dollar she spends on clothing is 9. The price of food is $1.20/unit, and the price of clothing is $0.90/unit. Is Aria maximizing her utility?arrow_forward
- Explain what the utility maximizing choice means. Discuss how you could use marginal utility to make consumer choicesarrow_forwardA consumer is currently purchasing three pairs of jeans and five T-shirts per year. The price of jeans is $30, and T-shirts cost $10. At the current rate of consumption, the marginal utility of jeans is 60, and the marginal utility of T-shirts is 30. Is this consumer maximizing his or her utility? Would you suggest that he buy more jeans and fewer T-shirts, or more T-shirts and fewer jeans?arrow_forwardUsing the consumer choice theory, explain how an individual decides what combination of different products to buy?arrow_forward
- Hi can you solve this step by step please. Eric receives utility from days spent traveling on vacation domestically (D) and days spent traveling in a foreign country (F) as given by the utility U(D, F) = DF. The price of a day spent traveling domestically is $160 and in a foreign country $200. Eric’s annual budget for traveling is $8,000. Find Eric’s utility maximizing choice of days traveling domestically and in a foreign country. Find also his utility level from consuming that bundle.arrow_forwardUsing the consumer choice theory, explain how an individual decides how to adjust her preferred combination of different products to buy when the price of just one product changes ?arrow_forwardMarie has a weekly budget of $24. Pie's are $12. Magazine's are $4. What is the maximum number of pies Marie can buy in a week? What is the maximum number of magazines Marie can buy in a week?arrow_forward
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