Answer Happy

SECTIONS Instruction: Please answer each question on a new page. . QUESTION 1 [12 MARKS] Faith has a weekly budget of N$16 to spend on popcorn and pies. The price of popcorn is N$2 per packet $2 and the price of ples is N54 each. The data in Table 1 reflect the utility that Faith derives from the popcom and pies Table 1 Utility Schedule Popcorn (PN$2) per packet $ TU MU MU/P Pies ( PN$4) each Quantity TU MU MU/P 0 0 0 0 80 1 1 66 132 2 100 152 3 128 168 4 4 152 (a) Copy Table 1 in your answer sheet and fill in the blanks. (16 x 0.58 marks) (h) How many pies and packets of popcorn should Faith buy in order to maximize utility? (2 marks) ? (c) State the law of diminishing marginal utility (2 marks) 22 TUTORIAL LETTER PRINCIPLES OF MICROECONOMICS PMI5115 SEMESTER 1/2022 QUESTION 2 [18 MARKS] A firm produces a product which it sells in a perfectly competitive market. The price of the product is N$60 A a per unit and the firm's cost structure is given in Table 2. Table 2 Cost Schedule Units Total fixed Total variable Total cost Average (total) Marginal cost cost cast cost produced Q q NS NS NS NS NS 0 24 1 40 2 74 3 108 4 160 5 220 5 306 (al Copy Table 2 in your answer sheet and fill in the blanks b) (6) How many units should this firm produce and sell to maximise its profits? for your answer. 10 What does the term "bed cost refer to? (28x0.5=14 marka) Provide a reason [2 marks) ) (2 marks) )