Question
You are given the following data about the consumer utility in the USA for watching television programming. Total Utility (TU) is measured in 1000 utils,
You are given the following data about the consumer utility in the USA for watching television programming. Total Utility (TU) is measured in 1000 utils, and the quantity of television watched (Q) is measured in the number of hours of TV watched per week. Marginal Utility (MU) is also measured in 1000 utils.
Total Utility (TU) | 0 | 15 | 27 | 37 | 45 | 51 | 53 | 53 | 50 |
Hours of TV Watching (Q) | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
- In one clearly and accurately labeled graph, created using Excel, graph the Total Utility (TU) curve of television watching.
- In one clearly and accurately labeled table created using Excel, list your data for Marginal Utility (MU), being certain to show all your work for calculating MU. You must show all the work for all calculations.
- In one clearly and accurately labeled graph, created using Excel, graph your Marginal Utility (MU) curve for consumer TV watching.
- In one clearly and accurately labeled table created using Excel, list your data for MU, being certain to show all your work for calculating MU.
- Based solely on your graphs in parts 1 and 3, and specifically referencing both graphs, explain the following (do not speak in general terms, the answers need to be in terms of your particular graphs):
a. state exactly where TU and MU have hit their peak and why they have hit their peak.
b. state exactly where diminishing marginal utility begins on both graphs and why it starts there.
c. state exactly where negative marginal utility is located on both curves and why.
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