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Solve the following exercise: The following table shows the levels of cardinal utility that a person with two consumption options, education and entertainment: Education (days)
Solve the following exercise: The following table shows the levels of cardinal utility that a person with two consumption options, education and entertainment:
Education (days) | Net profit | Marginal utility | Marginal utility/$ | Entertainment (days) | Total utililty | Marginal utility | Marginal utility/$ |
0 | 0 | 0 | 0 | ||||
1 | 1000 | 1 | 2100 | ||||
2 | 1500 | 2 | 4100 | ||||
3 | 2200 | 3 | 5200 | ||||
4 | 3500 | 4 | 6200 | ||||
5 | 4300 | 5 | 6600 |
Entertainment per day: $210
Education per day: $200
Determine the following: :
Marginal Utility (Education and Entertainment)
Marginal utility/price (Education and entertainment)
Optimal combination of services for the consumer
According to the optimal combination result of the previous table, calculate the budgetary restriction for this consumer.
Education (days) | Price | Total 1 P*Q | Education (days) | Price per day | Total 2 (P*Q) | Budget restriction |
5 | 200 | 0 | 210 | |||
4 | 200 | 1 | 210 | |||
3 | 200 | 2 | 210 | |||
2 | 200 | 3 | 210 | |||
1 | 200 | 4 | 210 | |||
0 | 200 | 5 | 210 |
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