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The tables show the utility Parker experienced from consuming varying quantities of waffles and pancakes. Assume that waffles cost $2.00 each, pancakes cost $1.00 each,
The tables show the utility Parker experienced from consuming varying quantities of waffles and pancakes. Assume that waffles cost $2.00 each, pancakes cost $1.00 each, and that Parker has $8.00 to spend on these two goods. Since Parker cannot afford more than four waffles or eight pancakes, the utility is given only for quantities smaller thanthese.
Quantity Total utility Marginal utility of waffles of waffles of waffles 100 100 2 180 80 240 60 270 30Quantity Total utility Marginal utility of pancakes of pancakes of pancakes 40 40 2 70 30 90 20 4 105 15 115 10 6 120 5 123 3 125Step by Step Solution
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