Question: ? @ n Consider the two questions about utility. The table refers to the first question only. Tod loves to travel, and he takes several
Consider the two questions about utility. The table refers to the first question only.
Tod loves to travel, and he takes several river cruises per year. The table contains information about the utility Tod gets from the river cruises.
tableNumber of river cruises,Total utility,Marginal utility
From this information, it can be concluded
that the number of river cruises Tod takes is indeterminable without knowing Tod's income or the price of the cruises.
that Tod will take two river cruises.
that Tod will take three river cruises.
that total utility is maximized when Tod takes one river cruise.
Suppose that Jim has $ to spend on a snack and that the only thing available is tea and scones. Jim's marginal utility of the first cup of tea is and his marginal utility of the second cup of tea is Each cup of tea costs $ Jim's marginal utility of the first scone is and his marginal utility of the second scone is Each scone costs $
Jim should purchase to maximize his utility.
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