Jimmy has the following utility function for hot dogs: U(H) = 10H H2, with MUH =
Question:
a) Plot the utility and marginal utility functions on two separate graphs.
b) Suppose that Jimmy is allowed to consume as many hot dogs as he likes and that hot dogs cost him nothing. Show, both algebraically and graphically, the value of H at which he would stop consuming hot dogs.
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a The first figure below shows Jimmys utility function for hotdogs You can see t...View the full answer
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