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I would to know the answers for all 3 questions including calculations. Questions 1. Jane has been worlcing all day, missing both her breakfast and
I would to know the answers for all 3 questions including calculations.
Questions 1. Jane has been worlcing all day, missing both her breakfast and lunch. Finally able to leave work, after being required to work a couple of overtime hours, she is starving. Jane has $21] in her pocket, so she stops at a local fast food restaurant and orders a grilled chicken sandwich and an order of ies. As she sits down to eat them, a university student approaches her and tells her that she is doing aresearch project for her microeconomics course and would like to ask lane a few quick questions. Jane agrees, and the student asks what \"score\" (nlarginal utility} from 1 to 10C! would she give as her satisfaction level with the first sandwich and the first Eries'}l After eating that order, Jane is still hungry and orders a second chicken sandwich and another order of fries. Again, the student asks Jane to give her new scores. Since Jane has not eaten all day, she is hungry enough to order a third round of food and again gives "scores"= to the inquisitive student. Below is the university student's completed experiment tally sheet of lanes marginal utility "scores" and the calculation of her marginal utility per dollar, given that each sandwich costs $4.4m, and each order of ies costs $2.00. Her budget is $11]. The student filled in the shaded cells based on Jane: 5 responses, then computed the values in the remaining cells. Using this information, answer the following questions. Student's completed experiment tallyr sheet. Available budget is 32\". (score) Price (score) Price Money Total Total from 1 to of each Money Order from 1 of each spent Money Budget Order of 100 $4.00 spent on of to 100 $2.00 on Spent Remaining Chicken mu mu/$ Chicken Fries mu mu/s Fries Sandwich Sandwich 1st 100 25 $4.00 1st 50 25 $2.00 $6.00 $14.00 2nd 72 18 $4.00 2nd 20 10 $2.00 $12.00 $8.00 3rd 60 15 $4.00 3rd 6 3 $2.00 $18.00 $2.00 4th 4th Utility 232 Utility 76 Total spent on chicken sandwiches: $12 Total spent on fries: $6.00 Total money spent: $18.00 Total budget remaining: $2.00 Marginal utility per dollar for chicken sandwiches of the last item purchased: 15 mu/$ Marginal utility per dollar for fries of the last item purchased: 3 mu/$ Total utility for both: 308a. Is Jane maximizing her utility? Explain your reasoning and show any calculations. The concept of marginal utility is based off the principal of diminishing marginal utility. It is the measurement of additional satisfaction gained from consuming one additional unit of a good or service O). Comparing the marginal utility per dollar for each last item consumed, Jane is not maximizing her utility. She would receive more satisfaction for each dollar spent on fries compared to the sandwich. The marginal utility for the last chicken sandwich is 15mu/S($4.00/60mu) Marginal utility for last fries is 3mu/$($2.00/6mu) 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? You will need to enter a number for marginal utility, based upon the law of diminishing marginal utility, for an additional order of fries. Be sure to explain your reasoning and show your calculations. We can see the marginal utility for the last order of fries is 6 and continues to decline. Knowing the principle of diminishing marginal utility, an additional order would be lower than 6, let's use the number 4. She would be better ordering an additional fry. 2 chicken sandwiches: 60mu (30mu/sandwich) 3 fries: 10mu (4mu/order) Total utility: 60mu+10mu=70mu c. If Jane is not maximizing her utility with the original purchase combination, remembering the law of diminishing marginal utility, would she be better off buying just one more order of fries? You will need to enter a number for marginal utility, based upon the law of diminishing marginal utility, for an additional order of fries. Be sure to explain your reasoning and show your calculationsStep by Step Solution
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