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Fatimah uses two products namely item M and item N. The total utility for her consumption is shown in the table below. Assume the
Fatimah uses two products namely item M and item N. The total utility for her consumption is shown in the table below. Assume the price of item M and item N is RM8 and RM4. Fatimah only has RM52 to spend. Quantity (unit) 2 4 5 6 In 7 Goods M 56 104 136 160 170 176 178 Total Utility Goods N 32 60 84 104 116 126 134 (a) Calculate the marginal utility of each product. (b) How many units of goods M and goods N should Fatimah buy to maximize her utility with an income of RM52?. (c) How much utility does Fatimah receive at equilibrium?
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To calculate the marginal utility of each product we need to determine the change in total utility when consuming one additional unit of the respectiv...
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
