1 Product Choices You Are Trying To Figure Out What Combination Of Products A And B To Buy Given That You Currently Ha 1 (50.98 KiB) Viewed 26 times
1 Product Choices You Are Trying To Figure Out What Combination Of Products A And B To Buy Given That You Currently Ha 2 (50.58 KiB) Viewed 26 times
1. Product Choices You are trying to figure out what combination of Products A and B to buy, given that you currently have an income of $300.00 to spend. The price of product A is $100.00, while the price of product B is $50.00. Below is a list of the total and marginal utility you derive from consuming both products. PRODUCT A PRODUCT B Quantity Total Utility Marginal Utility Quantity Total Utility Marginal Utility 0 0 0 0 1 12000 1 5000 2 8000 2 4000 3 6000 3 3000 4 30000 4 2500 ANO AN a. Fill in the blanks in the table above. b. Given your income of $300.00, what combination of the two products will you purchase? C. What is the total utility you receive from this combination of goods that you chose in part b?
EQUATIONS Marginal Utility (MU) = Change in Total Utility (TU) / Change in Output Marginal Product (MP) = Change in Total Product (TP) / Change in Labor Average Product (AP) = Total Product (TP) / Labor Total Cost (TC) = Total Fixed Cost (TFC) + Total Variable Cost (TVC) Average Fixed Cost (AFC) = Total Fixed Cost (TFC)/Total Product (TP) Average Variable Cost (AVC)= Total Variable Cost (TVC)/Total Product (TP) Average Total Cost (ATC) = Total Cost (TC)/ Total Product (TP) = Average Fixed Cost (AFC) + Average Variable Cost (AVC) Marginal Cost (MC)= Change in Total Cost (TC) / Change in Total Product (TP) = Change in Total Variable Cost (TVC)/ Change in Total Product (TP)
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