Greg has a weekly budget of $17.00 to spend on brownies and milk. The price of brownies is $2.00,...
Question:
Greg has a weekly budget of $17.00 to spend on brownies and milk. The price of brownies is $2.00, and the price of milk is $3.00.
Calculate marginal utility per dollar for each good and use it to complete the table below.
| Brownies Per Period | Marginal Utility Brownies | MU/S Brownie | Milk Per period | Marginal Utility Milk | MU/S Milk |
| 1 | 18 | 1 | 15 | ||
| 2 | 14 | 2 | 12 | ||
| 3 | 10 | 3 | 9 | ||
| 4 | 6 | 4 | 6 | ||
| 5 | 2 | 5 | 3 |
Marginal Utility Per Dollar:
In business, the marginal utility is the additional utility achieved from an additional unit of a good or service. Therefore, the marginal utility per dollar is the additional utility that an additional dollar spent on a good brings to the consumer.
Answer and Explanation: 1
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View this answerThe marginal utility for a good is calculated as:
{eq}\dfrac{MU}{P} {/eq}
Where {eq}MU {/eq} is the marginal utility and {eq}P {/eq} is the...
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