Instructions: Enter your answer as a whole number. If you are entering a negative number include a minus sign. Suppose that Biff enters a hot dog eating contest. He enjoys hot dogs, so he gladly pays the $20 entry fee. Biff realizes there is very little chance that he will actually win the contest. He just likes the idea of being able to eat all the hot dogs he wants. The table below shows Biff's utility from eating hot dogs. Instructions: Enter your answers as a whole number. If you are entering a negative number include a minus sign. a. Use the table below and fill in the values for marginal utility. Hot Dogs and Biff's Utility Hot Total Utility Marginal Utility Dogs (utils) (utils) 5 48 6 52 2 7 54 1 8 55 -1 9 54 -1 10 51 -3 b. Use the table to graph Biff's total utility and marginal utility for hot dogs. Instructions: Use the tool provided "Total Utility" to plot Biff's total utility point by point (6 points total). Graph Summary Tools Correct Total Utility 56 55 Biff's Total Utility from Hot Dogs
Added by Deborah F.
Close
Step 1
We calculate this by subtracting the total utility of the previous number of hot dogs from the total utility of the current number of hot dogs. Show more…
Show all steps
Your feedback will help us improve your experience
Andrew Davis and 82 other Microeconomics educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Key Concepts
Recommended Videos
Suppose the price of a soda is $2 each; the price of a hot dog is $3 each and the budget is $20. If the marginal utility of the fourth soda is 100 and the marginal utility of the fourth hot dog is 150, to maximize utility, a person will buy 1) 4 sodas and 4 hot dogs 2) more hot dogs than 4 and fewer sodas than 4 because hot dogs provide more utility 3) buy more sodas than 4 to increase their utility 4) fewer sodas than 4 and more hot dogs than 4.
Andrew D.
Georgia always eats hot dogs in a bun together with 1 oz. of mustard. Each hot dog eaten in this way provides 15 units of utility, but any other combination of hot dogs, buns, and mustard is worthless to Georgia. a. Explain the nature of Georgia's utility function and indicate the form of her indifference curve map. b. Suppose hot dogs cost $\$ 1,$ buns cost $\$ .40,$ and mustard costs $\$ .10$ per ounce. Show how Georgia's utility can be represented by the total amount of money she spends on these three items. c. How would your answer to part (b) change if the price of hot dogs rose to $\$ 1.50 ?$
Paul A.
Frida loves to eat hot dogs and peanuts at the baseball park. She has a budget of $21, and one bag of peanuts costs $3 while a hot dog costs $6. Using the table below, identify the total utility of hot dogs and peanuts when Frida maximizes her utility within her budget constraint. Hot dogs Total Utility Peanuts Total Utility 1 22 1 16 2 43 2 31 3 62 3 45 4 81 4 58 5 97 5 70 6 111 6 81 7 119 7 92
Rashmi S.
Recommended Textbooks
Principles of Economics
Principles of Microeconomics for AP® Courses
Economics
Transcript
18,000,000+
Students on Numerade
Trusted by students at 8,000+ universities
Watch the video solution with this free unlock.
EMAIL
PASSWORD