The table below provides Angie\'s utility for donuts and cookies. Assume that do

Question

The table below provides Angie's utility for donuts and cookies. Assume that donuts and cookies are free Donuts, Cookies, and Angie's Utility Cookies Donuts Marginal Utilit Marginal Utilit Cookies Total Utilit Donuts Total Utilit 0 12 12 21 28 34 39 43 10 10 16 20 23 25 26 6 Instructions: Enter your answers as a whole number a. What is Angie's total utility if she consumes 2 donuts and 4 cookies? utils b. If Angie consumes 2 donuts and 4 cookies, would she rather her next treat be a donut or a cookie? One cookie One donut C. Now suppose Angie consumes 6 donuts and 2 cookies, what is her total utility? utils d. Would Angie rather consume 2 donuts and 4 cookies or 6 donuts and 2 cookies? 2 donuts and 4 cookies 6 donuts and 2 cookies

Explanation / Answer

a)
total utility=TU of 2 donuts+TU of 4 cookies
=16+34
=50
b)
one cookie
because MU of one cookie is higher than the MU of donuts
c)
TU=26+21
=47
d)
From a and c
we know that the TU for 2 donuts and 4 cookies is higher so she will purchase 2 donuts and 4 cookies
Option 1

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.