Fatimah uses two products namely item M and item N. The total utility for her consumption...
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Fatimah uses two products namely item M and item N. The total utility for her consumption is shown in the table below. Assume the price of item M and item N is RM8 and RM4. Fatimah only has RM52 to spend. Quantity (unit) 2 نها 4 5 6 In 7 Goods M 56 104 136 160 170 176 178 Total Utility Goods N 32 60 84 104 116 126 134 (a) Calculate the marginal utility of each product. (b) How many units of goods M and goods N should Fatimah buy to maximize her utility with an income of RM52?. (c) How much utility does Fatimah receive at equilibrium? Fatimah uses two products namely item M and item N. The total utility for her consumption is shown in the table below. Assume the price of item M and item N is RM8 and RM4. Fatimah only has RM52 to spend. Quantity (unit) 2 نها 4 5 6 In 7 Goods M 56 104 136 160 170 176 178 Total Utility Goods N 32 60 84 104 116 126 134 (a) Calculate the marginal utility of each product. (b) How many units of goods M and goods N should Fatimah buy to maximize her utility with an income of RM52?. (c) How much utility does Fatimah receive at equilibrium?
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Answer rating: 100% (QA)
To calculate the marginal utility of each product we need to determine the change in total utility when consuming one additional unit of the respectiv... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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