This website uses cookies to ensure you have the best experience.

# Chapter 6 Essay

566 words - 3 pages

Chapter 6 - (30 points)

3. If a person consumes fewer units of a good, will marginal utility of the good increase as total utility decreases? Why or why not?

Yes, it will, as long as the marginal utility of the units of the good no longer consumed was not negative. To illustrate, suppose the situation is as shown in Exhibit 1a. If the consumer consumes 5 units of good X, total utility is 40 utils and marginal utility is 6 utils. If she consumes one less unit of good X, or 4 units, total utility drops to 34 utils but marginal utility rises to 7 utils. (5 points)

4. If the marginal utility of good A is 4 utils and its price is \$2 and the marginal utility of good B is 6 utils and its price is ...view middle of the document...

(5 points)

1. The marginal utility for the third unit of X is 60 utils and the marginal utility for the fourth unit of X is 45 utils. If the law of diminishing marginal utility holds, what is the minimum total utility?

We can’t tell for certain, except that it is greater than 105 utils. The first units consumed of the good might have lower marginal utilities than units three and four, as long as the MU’s of those units are higher than the MC of purchasing them. The law of diminishing marginal utility does not say that MU always starts high and declines, only that at some point it will decline. (5 points)

3. The total utilities of the first five units of good X are 10, 19, 26, 33, and 40 utils, respectively. In other words, the total utility of one unit is 10 utils, the total utility of two units is 19, and so on. What is the marginal utility of the third unit?

Marginal utility = (TC/(Q = (26 utils – 19 utils)/1 = 7 utils. (5 points)

4. If George spends \$5 (total) a week on good X and good Y, and if the price of each good is \$1 per unit, then how many units of each good does he purchase to maximize utility?

George will buy the units with the highest marginal utility. He will buy unit one of good X (20 utils), then unit one of good Y (19 utils), then unit two of good X (15 utils), then unit two of good Y (13 utils) and then unit three of good X (13 utils). So he buys \$3 worth of good X and \$2 worth of good Y. (5 points)

5. Given the number of units of each good George purchased in Question 4, what is his total utility?

TU = (MU. So TU = 20 + 19 + 15 + 13 + 13 = 80 utils. (5 points)

## Other Essays Like Chapter 6

### Chapter 6 & 7 Assignment

606 words - 3 pages Problem 6-5 in the text found on page 318: (13 points) Internal Control (LO 3, 4) 1. Morris Mart suffers from a lack of segregation of duties. Mary handles all tasks associated with collection of customer accounts. 2. Mary should not handle all aspects of accounts receivable, billing, and collection. Two different employees should mail invoices and record the amounts billed. Two employees should be present when the mail is opened. Another

### Case Study 2 (Chapter 6)

701 words - 3 pages 1. What is a data warehouse and why is REI building one? A data warehouse is unique kind of a database where current and historical data about a certain group of people such as customers, is stored. Information from operational systems, such as transaction processing systems, is extracted and summarised then stored in in a data warehouse. This type of information includes records about customer interaction patens, customer purchasing history or

### Outline Of Chapter 6: Accommodating Student Variability In "Psychology Applied To Teaching" 11th Edition By: Jack Snowman And Robert Biehler

7483 words - 30 pages Chapter 6Accommodating Student VariabilityThis chapter will describe different ways to deal w/ student variability. Teachers can expect to have a wide variety of students who differ in abilities, talents, & backgrounds. The reasons for such diversity include compulsory attendance laws, patterns of immigration, & laws that govern which students can & cannot be placed in special classes. Other factors include normal variations in

### Chapter 6 In Law 12 Textbook

2518 words - 11 pages suspension of a social privilege.A license to drive or a license to serve liquor in a restaurant.5. What is binding-over, and what is its purpose?Binding-over is the requirement by a judge of a person to keep the peace and be of good behavior. Its purpose is to deter the offender from committing a similar offence.6. a) When must a judge consider ordering restitution to a victim?The courts are required to consider restitution in all cases

### Cork Industry, the Wine Industry and the Need for Closure – Chapter 6

1054 words - 5 pages stress, it would require high levels of R&D investment to open new opportunities for cork materials. When referring to new opportunities it would be new items, such as, floor and wall coverings, coasters, cork board sheets, etc. A high level of R&D can guarantee some sort of sustainability for the cork industry and also remove TCA. By doing this, this can ensure growth in the company. 6 What portfolio of R&D projects would you

### ACC 460 Week 3 Learning Team Ch. 4 & 6 Textbook Problems

603 words - 3 pages 1â€“4, found at the beginning of the Problems section at the end of the chapter. For this assignment, use the CAFR your team selected in Week Two. ACC 460 Week 3 Learning Team Ch. 4 & 6 Textbook Problems ACC 460 Week 3 Learning Team Ch. 4 & 6 Textbook Problems Product Description Resources: Ch. 4 & 6 of Government and Not-for-Profit Accounting Prepare written answers to the following problems from Government and Not-for

### Weeklz Cond

570 words - 3 pages Chapter 3 | 10th March | 23rd March | 3 | Review 3 Chapter 4 | 17th March | 30th March | 4 | Review 4 Chapter 5 | 24th March | 13th April | 5 | Review 5 Chapter 6 | 31st March | 20th April | | Mid semester break | | | 6 | Review 6 Chapter 7 | 14th April | 4th May | 7 | No review this week | | | 8 | Review 7 Chapter 9 | 28th April | 11th May | 9 | Review 8 Chapter 10 | 5th May | 18th May | 10 | Review 9 Chapter 11 | 12th May | 25th May | 11 | Review 10 Chapter 12 | 19th May | 1st June | 12 | Review 11 Chapter 14 | 26th May | 8th June | 13 | No review this week—revision for final exam |

### 206 Quizzes

1509 words - 7 pages Received: | 5 of 5 |   | Comments: | | | |  6. | Question : | (TCO 2) A type of checksum used to detect errors in a transmitted frame. | |   | Student Answer: | |  Cyclic redundancy check |   | | |  Runts |   | | |  Input error |   | | |  Output error |   | Instructor Explanation: | Chapter 2 | | |   | Points Received: | 0 of 5 |   | Comments: | | | |  7. | Question : | (TC0 2) What will a switch do if

### Quiz 2 Study Guide

1112 words - 5 pages their capacity for effective parenting of their own children. *a. True (Wilson, Chapter 3, p.37, para.6) b. False 5. We will never be able to trust God until the pain is gone from our lives. a. True *b. False (Wilson, Chapter 12, p.194, para.4) 6. When young children discover family instability due to irresponsible parents, they compensate effectively and find a way to become healthy and secure. a

### Chapter Review

1478 words - 6 pages Review and Programming Exercises 10212010 CHAPTER 6: ASSIGNED REVIEW AND PROGRAMMING EXERCISES Please complete the following end of chapter review and programming exercises. They were selected because they are relevant to the competencies you must develop to complete the performance assessment. Complete R6.1, R6.2, R6.4, R6.7, R6.8, R6.11, R6.12, R6.13, R6.18 Complete P6.1, P6.5, P6.6, P6.9, P6.17. CHAPTER 7: ASSIGNED REVIEW AND

### Busn-380-11616 Personal Financial Planning Quiz 2

1114 words - 5 pages Portfolio income. Instructor Explanation: Chapter 4, page 111 Points Received: 1 of 1 Comments: Question 6. Question : (TCO 2) An example of a(n) _____ is a tax-deferred retirement plan. Student Answer: exemption CORRECT tax shelter passive income itemized deduction tax credit Instructor Explanation: Chapter 4, page 109 Points Received: 1 of 1 Comments: Question 7. Question : (TCO 2) An

## Related Papers

### Auditing Chapter 6 Essay

1224 words - 5 pages William Outlar AC555 Homework 3 Chapter 6 6-19 A. Which of the following best describes the reason why an independent auditor reports on financial statements? Ans. (2) Different interests may exist between the company preparing the statements and the persons using the statements. B. An independent audit aids in the communication of economic data because the audit Ans. (2) lends credibility to the financial statements. C. The major

### Inf 336 Chapter 6 Review Questions

663 words - 3 pages Chapter 6 Review Questions Andrea Ley Berenz INF 336 Prof. Lori Deere August 2, 2013 Chapter 6 Review Questions * Describe the differences between needs identification and defining commercial equivalents and discuss why it is preferable to separate into two stages. The first two steps of the acquisition process are essential to meeting the needs of the company properly. Needs identification is where a purchase begins and when the

### Lord Of The Flies Chapter 6 Summary

836 words - 4 pages LORD OF THE FLIES SUMMARY (CHAPTER 6) Summary In the darkness late that night, Ralph and Simon carry a littlun back to the shelter before going to sleep. As the boys sleep, military airplanes battle fiercely above the island. None of the boys sees the explosions and flashes in the clouds because the twins Sam and Eric, who were supposed to watch the signal fire, have fallen asleep. During the battle, a parachutist drifts down from the sky onto

### Accounting Cs Chapter 6 Essay

2925 words - 12 pages . 6. Sold merchandise on account to Holt Co., terms 2/10, n/30, FOB shipping point, \$40,000. The cost of the merchandise sold was \$24,000. 7. Received \$18,000 cash from Flatt Co. on account, no discount. 10. Sold merchandise for cash, \$90,000. The cost of the merchandise sold was \$50,000. 13. Paid for merchandise purchased on July 3, less discount. 14. Received merchandise returned on sale of July 6, \$7,000. The cost of the merchandise returned