Brennen spends all of his income on red hair dye and Chacos sandals. He has $700...

  

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Brennen spends all of his income on red hair dye and Chacos sandals. He has $700 of income, each bottle of hair dye costs $25, and each pair of Chacos sandals costs $100. The table below provides the utilities associated with bottles of hair dye and pairs of Chacos sandals. Use this information to answer the following 4 questions. Q hair dye 1 2 3 4 5 6 7 8 Utility from hair dye 30 50 65 75 80 83 85 86 Q sandals 1 2 3 4 5 6 7 8 Utility from sandals 200 375 525 640 740 800 830 850 5. What is Brennen's marginal utility per dollar spent on the 5th pair of sandals? a. 5 b. 1 c. 0.33 d. 0.2 6. What combination of sandals and hair dye maximizes Brennen's utility given his limited budget? a. 7 pairs of sandals and 0 bottles of hair dye b. 6 pairs of sandals and 4 bottles of hair dye c. 5 pairs of sandals and 8 bottles of hair dye d. 2 pairs of sandals and 6 bottles of hair dye Brennen spends all of his income on red hair dye and Chacos sandals. He has $700 of income, each bottle of hair dye costs $25, and each pair of Chacos sandals costs $100. The table below provides the utilities associated with bottles of hair dye and pairs of Chacos sandals. Use this information to answer the following 4 questions. Q hair dye 1 2 3 4 5 6 7 8 Utility from hair dye 30 50 65 75 80 83 85 86 Q sandals 1 2 3 4 5 6 7 8 Utility from sandals 200 375 525 640 740 800 830 850 5. What is Brennen's marginal utility per dollar spent on the 5th pair of sandals? a. 5 b. 1 c. 0.33 d. 0.2 6. What combination of sandals and hair dye maximizes Brennen's utility given his limited budget? a. 7 pairs of sandals and 0 bottles of hair dye b. 6 pairs of sandals and 4 bottles of hair dye c. 5 pairs of sandals and 8 bottles of hair dye d. 2 pairs of sandals and 6 bottles of hair dye

Answer rating: 100% (QA)

Q Red hair dye 1 2 3 4 LO 5 6 7 8 5 TU B 30 50 65 75 80 83 85 86 Correct Ans... View the full answer