Question: in everyday reality, a consumer does not only consume one kind of goods [products] but various kinds of goods {products}. Marginal Utility analyzes the combinations

in everyday reality, a consumer does not only consume one kind of goods [products] but various kinds of goods {products}. Marginal Utility analyzes the combinations of goods I and goods 'f whether each item provides the same level of satisfaction or not. Utility is denoted by U The rst derivative of U with respect to K is the Marginal Utility with respect to good X. The rst derivative of U to '1' is the Marginal Utility of good '1'. 1. Marginal Utility {MU}: About : A consumer's satisfaction by consuming goods X and goods '1' is: U = x\"2.y*3. Total consumer income is 1000 rupiah. The price of)( and the price of'r' per unit are 25 rupiah and 50 rupiah. a} Determine the utility function for each item b] what is the marginal utility if the consumer consumes 14 units of X and 13 units of Y cII Explain whether by consuming 14 units of item X and 13 units of item Y, consumer satisfaction is optimum or not
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
