2. Suppose that you are vacationing at a resort in the Caribbean and you are trying to determine how to spend your time and money on two activities, windsurfing and snorkelling, which both cost $6 per hour. The marginal utility of the activities are shown in table below. *Do not complete the table yet. No. of WINDSURFING SNORKELLING Hours Marginal Total Marginal | Marginal Total Marginal Utility Utility Utility Utility Utility Utility per per Dollar Dollar Spent Spent 1 150 150 120 120 2 130 280 110 230 3 110 390 100 330 4 90 480 90 4 20 5 70 550 80 m 6 50 600 70 5 to 7 30 630 60 10 640 6 30 8 50 680 a) Complete the column for total utilities in the above table. *DO NOT complete the other column yet. [2 marks] b) Assume that you have a budget of $48. To maximize your total utility, how would you allocate your budget between the two activities? What is the resulting total utility? [3 marks] Windsurfing: $ and hours Snorkelling: $ and hours Total utility: utilsc) Suppose that your utility from the two activities remains unchanged the next day, when you again arrive with $48 in your pocket. Unfortunately, you discover that the hourly charge for windsurfing has increased to $12. Complete the marginal utility per dollar columns in the table above. Round your answers to 2 decimal places. [2 marks] d) How will you now allocate your expenditures to maximize your total utility, assuming that partial hours cannot be purchased? [3 marks] Windsurfing: $ and hours Snorkelling: $ and hours Total utility: utils 3. IN YOUR OWN WORDS, explain the difference between accounting profit