Explain why, if Cindy equalized the marginal utility per hour of golf and tennis, she would not

Question:

Explain why, if Cindy equalized the marginal utility per hour of golf and tennis, she would not maximize her utility.

image text in transcribed

Make a table that shows Cindy’s affordable combinations of hours playing golf and tennis. If Cindy increases her expenditure to $100, describe how her consumption possibilities change.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For answer-question

Economics

ISBN: 9781292433639

14th Global Edition

Authors: Michael Parkin

See More Books

Question Posted: Jan 27, 2024 10:01 PM

See More Questions

Cindy has $70 a month to spend, and she can spend as much time as she likes playing golf and tennis. The price of an hour of golf is $10, and the price of an hour of tennis is $5. The table shows...
Explain why, if Cindy equalized the marginal utility per hour of golf and tennis, she would not maximize her utility.
Cindy takes a Club Med vacation, the cost of which includes unlimited sports activities. With no extra charge for golf and tennis, Cindy allocates a total of 4 hours a day to these activities. a. How...
Assuming that the Fed judges inflation to be the most significant problem in the economy and that it wishes to employ all of its policy instruments except interest on reserves, what should the Fed do...
If f is the function considered in Example 3, use a computer algebra system to calculate f and then graph it to confirm that all the maximum and minimum values are as given in the example. Calculate...
Find the center-radius form of the equation for each circle. Center (5, -7), radius 3
Does Fairmont have any personnel whose last name is similar?
George Johnson recently inherited a large sum of money; he wants to use a portion of this money to set up a trust fund for his two children. The trust fund has two investment options: (1) a bond fund...
16. Brenda's Balloon Shop is a price taker, and the table below shows its costs of production. Use it to answer the following questions: Output (balloons Total Cost (dollar per hour) per hour) 0 4 1...
a. List the combinations of hours spent playing golf and tennis that Cindy can now afford and her marginal utility per dollar from golf and from tennis. b. How many hours does Cindy now spend playing...
a. How many hours of golf and how many hours of tennis does Cindy play to maximize her utility? b. Compared to part (a), if Cindy spent a dollar more on golf and a dollar less on tennis, by how much...
What supplemental disclosures are required by FASB Statement No. 95 if a company elects to use the direct method in preparing its statement of cash flows? What disclosures are required if the...
What is the market for corporate control? What role does it play in solving or exacerbating the agency problem?
You learned that a firm should shut down in the short run if the price it receives falls below the minimum value of its average variable cost. If the price is exactly equal to the minimum of the...
Mariana is operating a studio house in Palma de Mallorca, Spain. Hundreds of hotels, motels, villas, apartments, and studio houses are offered as tourist accommodations in the area. Mariana opened...
What are the fundamental and dynamic perspectives of competitive advantage?
What is the difference between stock options and restricted stock? What are the advantages and disadvantages of each?
Barta entered into a written contract to buy the K&K Pharmacy, located in the local shopping center. Included in the contract was a provision stating that this Agreement shall be contingent upon...
The overall reaction and equilibrium constant value for a hydrogenoxygen fuel cell at 298 K is 2H 2 (g) + O 2 (g) 2H 2 O(l) K = 1.28 10 83 a. Calculate E cell and G 8 at 298 K for the fuel cell...
American automakers buy auto parts from independent suppliers rather than produce the parts themselves. In the 1980s, Chrysler got about 70 percent of its auto parts from independent suppliers, while...
Federal Express enters into contracts with independent truck operators who offer FedEx service and who are rewarded by the volume of packages they carry. Why doesnt FedEx buy more trucks and hire...
Lego, the Danish toymaker, incurred economic losses in 2003 and 2004. Lego faced competition from low-cost copiers of its products and a fall in demand. In 2004, to restore profits, Lego fired 3,500...
How do immunomodulatory cytokines orchestrate the delicate balance between pro-inflammatory and anti-inflammatory signaling pathways within the immune system, and what implications does this balance...
Given f(x)=x3-9x2 + 24x-10, (A) Find the critical numbers of f. (B) Find the local maxima and local minima of f. (C) Sketch a graph of f.
How do environmental factors, such as diet, microbiota composition, and exposure to pollutants, influence immune function and susceptibility to infectious and inflammatory diseases?

Explain why, if Cindy equalized the marginal utility per hour of golf and tennis, she would not

Question:

Hours per month 4567234 2 Marginal utility from golf 80 60 40 30 20 10 6 Marginal utility from tennis 40 36 30 10 LON 5 2 1

Step by Step Answer:

ANSWER To explain why equalizing the marginal utility per hour of golf and tennis would not maximize Cindys utility we need to understand the concept ...View the full answer

Economics

Students also viewed these Business questions