Replying to Economist NSers i need your help!
Will give karma if you answer these questions.
1.Explain how a consumer
maximizes total utility. Use Marginal Utility Theory.
2.Mrs. Wilson buys
loaves of bread and quarts of milk each week at prices of $1 and 80 cents,
respectively. At present she is buying
these two products in amounts such that the marginal utilities from the last
units purchased of the two products are 80 and 70 utils, respectively. Is she buying the utility‑maximizing
combination of bread and milk? If not,
how should she reallocate her expenditures between the two goods?
Thanks!
Click to expand post