Question
Mr. Roy consumes two goods i.e Apples and Mangoes .Given the following information; Quantity is 1-5. TU - Apples is ; 0,16,28,36,40,42. MU- Apples ;
Mr. Roy consumes two goods i.e Apples and Mangoes .Given the following information;
Quantity is 1-5.
TU - Apples is ; 0,16,28,36,40,42.
MU- Apples ; no information is given.
TU - Mangoes; 0, 24, 44, 56, 64, 68.
MU- Mangoes ; no information is given.
a) draw a table completing MU- mangoes and MU apples.
b)Assuming that the price for Apples is 4 dollars and the Price for Mangoes is K 2. What combination of Apples and Mangoes will maximize Mr. Roys' utility?
c)Suppose the price for mangoes increases by 2 dollars and assuming that Mr. Roy has a budget constraint of 20 dollars . How many Apples and Mangoes will he consume?
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Management And Cost Accounting
Authors: Colin Drury
5th Edition
9781861525369
