A find gordons marginal utility of consuming an additional...

a. Find Gordon’s marginal utility of consuming an additional steak? b. Find Gordon’s marginal utility of consuming an additional wine? c. If Gordon is consuming three 16oz Sirloin and four glasses of wine, what is his additional utility if he consumes one more 16 oz Sirloin? Gordon obtains happiness by consuming a 16oz Sirloin (medium rare) and a glass of wine. He sets aside $100 a week to indulge his preferences on a Friday night. His utility function is defined by 𝑈 = 1 𝑆3𝑊2. a. Find Gordon’s marginal utility of consuming an additional steak? b. Find Gordon’s marginal utility of consuming an additional wine? c. If Gordon is consuming three 16oz Sirloin and four glasses of wine, what is his additional utility if he consumes one more 16 oz Sirloin?

Transcript

00:01 Part a total number of burgers is given, we also have total number total utility of burgers marginal utility of burgers total utility of pizza marginal utility of pizzas and number of pizzas now also when the total number of burgers is given as zero the total utility of burger is also given as zero therefore to calculate the marginal utility of burgers we know that since total number of burger 0 and total utility of burgers is zero therefore marginal utility of burger is also zero also the total utility of pizza is given as zero and the number of pizzas is zero therefore marginal utility of pizza will automatically be zero as it depends on total utility of pizza and number of pizzas which are zero now this is when total number of burgers is one we have marginal utility of burgers is given as 40 therefore total utility of burgers will be equal to when the total number of burgers is 1 it will be equal to fragility of burgers and 0 when total number of burgers is 0 plus margin utility of burger 1 so this is 0 plus 40 this comes out to be 40 that is total utility of burgers is 40 because this is equal to marginal equals 40 plus 40 burgers which is 0 in the previous case then also totally put of pizza is 12 here and the number of pizzas is 1 here therefore marginal utility of pizza is automatic will be equal to 12 as marginal utility of pizza when total number of pizzas is 1 equal to total utility of pizza which is 12 minus total utility of pizza in the previous case 0 so 12 minus 0 equals 12 which is a marginal utility of pizza now similarly completing all the other parts of the table marginal utility of burger is 32 when total number of burgers is 2 therefore total utility of burgers will be equal to 40 plus 32 that is 72 like we have done in the previous case also total utility of pizza is given as 20 and the number of pizzas is 2 also marginal utility is given as 8 which again we can calculate this 20 minus 12 8 but if this is 3 total utility of burger is given as 96 this is 96 also 96 also marginal utility of burgers therefore will be 96 minus 72 that is 24 moreover total utility of pizzas is 24 and number of pizzas is 3 therefore marginal utility of pizza comes out to be 24 minus 20 that is 4 here similarly similarly we can calculate for the next part fourth fifth and sixth fourth this is 1 1 2 and this is 16 now total utility of pizzas will be 28 therefore marginal utility will be 28 minus 4 that is 4 and number of pizzas already given as 4 now when this is number of pizzas is 5 we are given marginal utility as 2 therefore total utility will be 30 and so on but in this case we have this as 112 therefore marginal utility of burgers 112 minus 112 that is 0 similarly moving on to the next part this is 120 here and this comes out to be marginal utility burger my total number of burgers is 6 120 minus 12 that is 8 here and this is 30 here and marginal utility of pizzas is 0 and total number of…

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