Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

b. If Jane is not maximizing her utility, remembering the Law of Diminishing Marginal Utility, would she be better off to buy one less chicken

image text in transcribed
image text in transcribed
b. If Jane is not maximizing her utility, remembering the Law of Diminishing Marginal Utility, would she be better off to buy one less chicken sandwich and one more order of fries? Explain your reasoning and show any calculations. (2 points) If she buys one less sandwich her utility would be 172. The total utility from fries will continue to go down no matter how much you add, even the 4 it still will continue to not match the sandwiches. The law of diminishes marginal utility for fries will continue to drop. 1 st 100mu/$4.00= 25mu/$ 1 s 50mu/$2.00=25mu/$ and 72 mu/$4.00=18mu/$ and 20mu/$2.00=10mu/$ 3rd 6 mu/$2.00=3mu/$ 172mu/$8.00 76mu/$6.00 What about MU/$? You did this correctly for part a

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Business Law Principles For Today's Commercial Environment

Authors: David P Twomey, Marianne M Jennings

2nd Edition

0324303947, 9780324303940

More Books

Students also viewed these Economics questions

Question

Determine the of ????2 when (a) ???? = 0.83. (b) ???? = .77.

Answered: 1 week ago