Your buddy Amanda wants your advice. She presents you with the utility schedule and wants to...

 

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Your buddy Amanda wants your advice. She presents you with the utility schedule and wants to know how many units of Product B she should purchase to maximize her utility. She tells you the price of Product A is $6 and the price of Product B is $5. Amanda informs you she only wants to spend $38. How many units of Product B do you tell Amanda to purchase? Quantity of Total Marginal Product A Utility Utility 1 2 3 4 5 6 7 24 45 63 78 90 99 105 24 21 18 15 12 9 6 Marginal Utility per Dollar Marginal Utility per Dollar 7 Quantity of Total Marginal Product B Utility Utility 1 18 2 35 ? 3 51 ? 4 66 2 5 80 7 6 93 ? 7 105 ? 18 17 16 15 14 13 12 Marginal Utility per Dollar ? 1112 Your buddy Amanda wants your advice. She presents you with the utility schedule and wants to know how many units of Product B she should purchase to maximize her utility. She tells you the price of Product A is $6 and the price of Product B is $5. Amanda informs you she only wants to spend $38. How many units of Product B do you tell Amanda to purchase? Quantity of Total Marginal Product A Utility Utility 1 2 3 4 5 6 7 24 45 63 78 90 99 105 24 21 18 15 12 9 6 Marginal Utility per Dollar Marginal Utility per Dollar 7 Quantity of Total Marginal Product B Utility Utility 1 18 2 35 ? 3 51 ? 4 66 2 5 80 7 6 93 ? 7 105 ? 18 17 16 15 14 13 12 Marginal Utility per Dollar ? 1112

Answer rating: 100% (QA)

Marginal utility per dollar can be calculated as Marginal utility of each product Price Substituting ... View the full answer