Answer the below question on the basis of the following marginal utility data for products X and
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Answer the below question on the basis of the following marginal utility data for products X and Y. Assume that the prices of X and Y are $4 and $2 respectively and that the consumer's income is $18.
1. What level of total utility will the utility-maximizing consumer realize?
a. 96 utils
b. 108 utils
c. 72 utils
d. 142 utils
2. What quantities of X and Y should be purchased to maximize utility?
a. 2 of X and 1 of Y
b. 4 of X and 5 of Y
c. 2 of X and 5 of Y
d. 2 of X and 6 of Y
3. If the price of X decreases to $2, then the utility-maximizing combination of the two products is:
a. 2 of X and 5 of Y
b. 4 of X and 6 of Y
c. 6 of X and 3 of Y
d. 4 of X and 5 of Y
Related Book For
Mathematical Applications for the Management Life and Social Sciences
ISBN: 978-1305108042
11th edition
Authors: Ronald J. Harshbarger, James J. Reynolds
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