Christina has decided to spend her evening eating sushi and watching videos. Each piece of sushi and
Question:
Christina has decided to spend her evening eating sushi and watching videos. Each piece of sushi and each video costs $2. Her total utility for the two products is shown in the table below.
VIDEO MOVIES | SUSHI PIECES | ||||
Number | Total Utility | Marginal Utility | Number | Total Utility | Marginal Utility |
1 | 34 | 1 | 40 | ||
2 | 64 | 2 | 76 | ||
3 | 88 | 3 | 108 | ||
4 | 106 | 4 | 136 | ||
5 | 118 | 5 | 162 | ||
6 | 126 | 6 | 184 |
a) Complete the marginal utility columns in the table above.
b) How should Christina allocate a budget of $14 to achieve utility maximization, and what will be her total utility?
Videos: _____
Pieces of sushi: ______
Total utility: _______ c) Suppose that the sushi shop offered a deal whereby Christina can buy a six-piece pack for $10. How will Christina allocate her budget, and what will be her total utility now? Videos: Pieces of sushi: _______
Total utility: ________
Fundamentals of Cost Accounting
ISBN: 978-0077398194
3rd Edition
Authors: William Lanen, Shannon Anderson, Michael Maher