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The table below show the marginal utility, measured in utils, that Ricardo would get by purchasing various amounts of products A, B, C, and D.
The table below show the marginal utility, measured in utils, that Ricardo would get by purchasing various amounts of products A, B, C, and D. Column 5 shows the marginal utility Ricardo gets from saving. Assume that the prices of A, B, C, and Dare, respectively, $18, $6, $4, and $24 and that Ricardo has a budget of $106. Quantity MU of Quantity MU of Quantity MU of Quantity MU of Number MU of of A A of B B of C of D D dollars dollars saved saved 72 24 15 36 1 5 54 15 W N P 12 30 2 4 AWNP 45 12 8 24 3 3 36 9 4 7 18 4 2 5 27 7 5 5 5 13 5 1 18 5 6 4 6 7 6 0.5 15 2 7 3.5 4 0.25 3 N CO 12 0.125 a. What quantities of A, B, C, and D will Ricardo purchase in maximizing his utility? How many dollars will Ricardo choose to save? b. Derive a demand curve for good A. Show work and explain steps/process. Consider the following firm, find the missing cost data Variable Average Average Average Fixed Total Output Fixed Variable Marginal Total Cost Cost Cost Cost Cost Cost Cost 0 100 0 100 1 190 2 270 3 340 400 470 550 640 750 880 1030
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