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3 years ago

The table below represents how Marco feels about chocolate candy bars.

Business

1 answer:

vlada-n [284]3 years ago

3 0

Answer:

A. Chocolate Candy Bars Total Utility (utils) Marginal Utility (utils

0 0 —

1 25 25

2 42 17

3 54 12

4 62 8

5 66 4

6 65 –1

2. Soda

Explanation:

A.Chocolate Candy Bars Total Utility (utils) Marginal Utility (utils)

0 0 —

1 25 25

2 42 17

3 54 12

4 62 8

5 66 4

6 65 –1

1. In a situation where the consumption go up from 0 to 1, this means that total utility will from 0 to 25.

Therefore the , marginal utility will be 25 (25 – 0).

2. Total utility will be 42(25+17)

3. Marginal utility will be 12 (54-42)

4. The total utility for quantity of 5 is 66, while the marginal utility is 4.

Hence the total utility will be 62 (66 – 4) while marginal utility will be 4(12-8)

6. Total utility will be 65(66-1)

B. Based on( A )above Marco already has two candy bars, which gave him a total utility of 42 this means that when we Add soda his utility would increase to 64 (42 + 22)

And in a situation where he consumes four candy bars which is 2 candy bars + another 2 extra candy bars this means his utility will be only 62.

Based on this Soda will be the preferred one

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