Question: Please answer the question thanks! :) Sue loves consuming potato chips and fizzy drinks. The table below shows Sue's marginal utility from consuming the first

Please answer the question thanks! :)

Sue loves consuming potato chips and fizzy drinks. The table below shows Sue's marginal utility from consuming the first four units of potato chip bags and fizzy drinks. Quantity Marginal Utility/ Marginal Utility/ Potato chip bags Fizzy drinks 30 40 2 25 35 3 20 26 4 15 18 The price of a bag of potato chips is $2.00, and the price of a fizzy drink is $1.00. 24a) If Sue has only $10.00 to spend on the two goods, she will buy how many units of each item? Explain how she chooses the bundle of goods. (5 marks)24b) You have a choice between the following three options 0 Option 1: A guaranteed $500 0 Option 2: 50% chance of $200 plus 50% chance of $600 0 Option 3: A guaranteed $300 and a 50% chance of receiving another $500 You choose option 3. Are you risk-averse, risk-neutral, or a risk-taker? Explain using relevant economic concepts

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

A man from Vietnam is in your office because his 11-year-old daughter has been having trouble in school. The school suggested the daughter be tested by your agency. You are doing the intake, but only...

Consumer Choice and Behavioural Economics Sue loves consuming potato chips and fizzy drinks. The table below shows Sue's marginal utility from consuming the first four units of potato chip bags and...

Question 1. please this on question only Read the attached financial statements then compute the followin .. Q1 for this question just formula how calculate please for every point 1. ROA = formula 2....

please answer this question thanks.. Sentinel Company is considering an investment in technology to improve its operations. The investment will require an initial outlay of $255,000 and will yield...

Please answer every question, thanks! What would not be a cause of a decline in the gross protit rate? Clestis 16 Not yet alwerd Select ane Points out of 2 Flay yuestion The company is selling goods...

please answer entire question, thanks! Markov Manufacturing recently spent $10.2 million to purchase some equipment used in the manufacture of disk drives. The fim expects that this equipment will...

Could you please answer this question, thanks Grear Tire Company has produced a new tire with an estimated mean lifetime mileage of 36,500 miles. Management also believes that the standard deviation...

could you please answer my question. thanks for your help... Question 1: Based on Risk Security management discuss the case study of Bank system Your answer should be content the following: Overview:...

Any expert can help me:: i have only this information .. Please your answer is highly appreciated: Questions: 1. Study the project plan, Work Breakdown Structure and Gantt Chart . (A sample of this...

Please answer this question thanks Point Price Quantity Total Elasticity In Dollars Demanded Revenue A 18 56 B 20 52 C 22 48 $1,056 24 44 26 40 -1.42 28 36 4 - One of the things brought up in the...

Please answer the question, Thanks Answer the Below Questions Question 1 A) Why is strategic management considered important for global market competition? B) What is the impact of sustainability on...

You are the training manager for your organization and must consider whether to create training in house or purchase training from a vendor. Describe the considerations you must take into account for...

Outline a general process applicable to most control situations. Using this, explain how you would develop a system to control home delivery staff at a local pizza shop.

Persons carning self - employment income of $ 4 0 0 or more must pay a self - employment tax. True False

CVP exercises the Super Donut owns and operates six doughnut outlets in and around Kansas City. You are given the following corporate budget data for next year: Revenues $10,000,000 Fixed costs $...

The corners of a rectangle lie on the ellipse (x/a)2 + (y/b)2 = 1. (a) Where should the corners be located in order to maximize the area of the rectangle? (b) What fraction of the area of the ellipse...

Find the dimension of the parallelepiped of maximum volume circumscribed by (a) A sphere of radius R; (b) An ellipsoid with semi axes a, b, c.

A disk of radius R rolls without slipping inside the parabola y = ax2. Find the equation of constraint. Express the condition that allows the disk to roll so that I contact the parabola at one and...

Original activity-based costing, activity-based management (Adapted from CMA, June 1992) Alaire Corporation manufactures several different types of printed-circuit boards; however, two of the boards...

Select one organization (bank, university, government agency, supermarket, medical device, pharmaceutical, or another) Describe in the organization the diversity of employees in age, gender, culture,...

=+1. Do you think of CSR in terms of a dichotomy, or do you think of CSR in terms of a continuum? If it is the former, what advantages does this approach provide? If it is the latter, what...

=+4. Why is it important that an audit of any aspect of a companys operations be conducted by an independent organization? What benefits are there for a firm in working together with NGOs to conduct...

=+5. Respond to the following quote concerning Nikes relationship with its global network of over 700 independent supplier factories: The relationship is delicate. NGOs have berated firms such as...