Jimmy has the following utility function for hot dogs: U(H) = 10H H2, with MUH =

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Jimmy has the following utility function for hot dogs: U(H) = 10H − H2, with MUH = 10 − 2H
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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Microeconomics

ISBN: 978-0073375854

2nd edition

Authors: Douglas Bernheim, Michael Whinston

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