Question

Alex P. Keaton is an ardent baseball fan. The following table shows the relation between the number of games he attends per month during the season and the total utility he derives from baseball game consumption:
Number of Baseball Games per Month .. Total Utility
0 .............. 0
1 ............. 50
2 ............. 90
3 ............. 120
4 ............. 140
5 ............. 150

A. Construct a table showing Keaton's marginal utility derived from baseball game consumption.
B. At an average ticket price of $25, Keaton can justify attending only one game per month. Calculate Keaton’s cost per unit of marginal utility derived from baseball game consumption at this activity level.
C. If the cost/marginal utility trade-off found in part B represents the most Keaton is willing to pay for baseball game consumption, calculate the prices at which he would attend two, three, four, and five games per month.
D. Plot Keaton's baseball game demand curve.



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  • CreatedFebruary 13, 2015
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