How many books and movies would maximize
Microeconomics
You are reviewing your monthly budget and determine you have $60.00 to spend on either books or movies each month. (Remember you must have whole numbers, not fractions) The books cost $8.00 and the movies cost $20.00. Put this into equation form.
Complete the following Total Utilities table.
Books |
|||
Total Utility |
Quantity |
Marginal Utility |
Marginal Utility Per $ |
50 |
1 |
||
80 |
2 |
||
100 |
3 |
||
110 |
4 |
||
Movies | |||
Total Utility |
Quantity |
Marginal Utility |
Marginal Utility Per $ |
22 |
1 |
||
42 |
2 |
||
52 |
3 |
||
57 |
4 |
Using the equation created above, solve to locate four points and plot them on a budget constraint line. Create the graph in Excel and paste onto your Word document answering the questions below.
Write a one page response answering the following questions about your graph and tables: