I. MUx = MU y
II. P x = P y
III. The slope of Budget line = slope of indifference Curve.
IV.Consumption bundle must be on budget constraint.
Table 1 | ||
---|---|---|
Gross Utility for Tofu Burgers and Iced Tea | ||
Quantity | Marginal Utility | Marginal Utility |
from Tofu Burgers | from Iced Tea | |
4 | 60 | 15 |
5 | 45 | 11 |
6 | 33 | 9 |
7 | 27 | 6 |
8 | 18 | 5 |
Table 2 | ||
---|---|---|
GROSS GENERALIZATIONS | ||
Generalizations Produced | Total Cost | |
0 | 25.00 | |
1 | 35.00 | |
2 | 50.00 | |
3 | 70.00 | |
4 | 95.00 | |
5 | 125.00 | |
6 | 160.00 | |
7 | 200.00 |
Table 3 | |
---|---|
Data For April Showers Inc. | |
Umbrellas Produced | Total Cost |
0 | 10.00 |
1 | 15.00 |
2 | 24.00 |
3 | 39.00 |
4 | 60.00 |
5 | 85.00 |
The following information is needed for the next 3 questions: A profit maximizing perfectly competitive firm is observed producing 800 books per day when the market price of books is $15.00. The total cost of producing 800 books per day is $4000.00. The firm's total fixed costs average to $1000.00 per day
Table 4 | |
---|---|
Joe's Utility for Novels per Month | |
Number of Novels | Total Utility in $ |
0 | $0 |
1 | $3 |
2 | $7 |
3 | $12 |
4 | $16 |
5 | $19 |
6 | $21 |
7 | $22 |
Table 5 | ||
---|---|---|
Fred's Marginal Utility for Brats and Beer | ||
Quantity | MU of Brat | MU of Beer |
1 | 16 | 11 |
2 | 14 | 10 |
3 | 12 | 9 |
4 | 10 | 8 |
5 | 8 | 7 |
6 | 6 | 6 |
7 | 4 | 5 |
8 | 2 | 4 |
Table 6 | |
---|---|
DATA FOR DODADS INC. | |
Number of | Dodads produced |
Workers | Per Hour |
1 | 8 |
2 | 16 |
3 | 23 |
4 | 29 |
5 | 34 |
6 | 38 |
7 | 41 |
8 | 43 |
9 | 44 |