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Micro 1.6-The Utility Function Practice

Last updated 11 months ago

14 Nsɛmmisa

1

1

1

1

Asemmisa {{asɛmmisaAhyɛnsode}}

1.

With how many oranges is total utility maximized?

Asemmisa {{asɛmmisaAhyɛnsode}}

2.

What is the total utility of 3 oranges?

Asemmisa {{asɛmmisaAhyɛnsode}}

3.

A rational agent (consumer/individual) would consume/eat/buy the 7th orange.

Nokorɛ

Ɛnyɛ ampa

1

1

1

1

1

Asemmisa {{asɛmmisaAhyɛnsode}}

8.

To maximize utility, how many apples should we consume?

1

Asemmisa {{asɛmmisaAhyɛnsode}}

9.

Given we have NO budget constraint. If we are consuming ____ apple(s), we should......

1
2
3
4
5
6
7

Consume More.
Stay Put.
Consume Less.

1

Asemmisa {{asɛmmisaAhyɛnsode}}

10.

What is the average utility of 3 apples?

Asemmisa {{asɛmmisaAhyɛnsode}}

11.

Which of these can serve as the rule for an optimal consumption bundle that will maximize utility for two goods?

Mux = MUy

MUy/Py = MUx/Px

MUx/Px = MUy/Py

(MUx ) (Py )= (MUy ) (Px)

1

1

Asemmisa {{asɛmmisaAhyɛnsode}}

13.

What combination of strawberries and apples will maximize an econ scholar's satisfaction, if they have $9 to spend and choose to spend their ENTIRE budget! (#S, #A)

1

Asemmisa {{asɛmmisaAhyɛnsode}}

14.

What was the marginal utility per dollar spent that justifies your answer in question 13?

Asemmisa {{asɛmmisaAhyɛnsode}}

4.

With which scoops do we see increasing marginal utility?

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2

3

4

5

none of the scoops

Asemmisa {{asɛmmisaAhyɛnsode}}

5.

With which scoops do we see positive marginal utility?

1

2

3

4

5

none of the scoops

Asemmisa {{asɛmmisaAhyɛnsode}}

6.

With which scoops do we see diminishing marginal utility?

1

2

3

4

5

none of the scoops

Asemmisa {{asɛmmisaAhyɛnsode}}

7.

With which scoops do we see negative marginal utility?

1

2

3

4

5

none of the scoops

Asemmisa {{asɛmmisaAhyɛnsode}}

12.

Strawberries cost $1 and Apples cost $2. Name EVERY combination bundle that will satisfy the optimal consumption rule.

(1S, 1A)

(2S, 2A)

(3S, 3A)

(4S, 4A)

(5S, 5A)

(6S, 6A)

(7S, 7A)