Solved

Table 53 Shows Sam's Marginal Utility for Goods A, B, C

Question 124

Essay

Table 5.3 shows Sam's marginal utility for Goods A, B, C, and
D.

 Table 5.3QAMUQBMUQCMUQDMUABCD1301321501152252162402932038330334154442041555251050\begin{array}{l}\text { Table } 5.3\\\begin{array}{cccccccc}\hline \mathrm{Q}_{\mathrm{A}} & \mathrm{MU} & \mathrm{Q}_{\mathrm{B}} & \mathrm{MU} & \mathrm{Q}_{\mathrm{C}} & \mathrm{MU} & \mathrm{Q}_{\mathrm{D}} & \mathrm{MU} \\& \mathrm{A} & & \mathrm{B} & & \mathrm{C} & & \mathrm{D} \\\hline 1 & 30 & 1 & 32 & 1 & 50 & 1 & 15 \\2 & 25 & 2 & 16 & 2 & 40 & 2 & 9 \\3 & 20 & 3 & 8 & 3 & 30 & 3 & 3 \\4 & 15 & 4 & 4 & 4 & 20 & 4 & 1 \\5 & 5 & 5 & 2 & 5 & 10 & 5 & 0\end{array}\end{array} Suppose the prices for Good A, B, C, and D are $5, $8, $20, and $3 respectively. If Sam's budget of $62, what is the Sam's consumption bundle?
What is his total utility?

Correct Answer:

verifed

Verified

blured image a) Sam's consumption bundle w...

View Answer

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents