HREQ 1880 Lecture : Social Constructionism
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Assume that an individual consumes three goods, X, Y, and Z. The marginal utility (assumed measurable) of each good is independent of the rate of consumption of other goods. The prices of X, Y, and Z are, respectively, $1, $3, and $5. The total income of the consumer is $65, and the marginal utility schedule is as follows:
Units of good | Marginal utility of X (units) | Marginal utility of Y (units) | Marginal utility of Z (units) |
1 | 12 | 60 | 70 |
2 | 11 | 55 | 60 |
3 | 10 | 48 | 50 |
4 | 9 | 40 | 40 |
5 | 8 | 32 | 30 |
6 | 7 | 24 | 25 |
7 | 6 | 21 | 18 |
8 | 5 | 18 | 10 |
9 | 4 | 15 | 3 |
10 | 3 | 12 | 1 |
(a)Given a $65 income, how much of each good should the consumer purchase to maximize utility?
(b)Suppose income falls to $43 with the same set of prices; what combination will the consumer choose?
(c)Let income fall to $38; let the price of X rise to $5 while the prices of Y and Z remain at $3 and $5. How does the consumer allocate income now? What would you say if the consumer maintained that X is not purchased because he or she could no longer afford it?
I need these ratios:
Return on Assets
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The table below represents the hourly output and cost structure for a local pizza shop. The market is perfectly competitive, and the market price of a pizza in this area is $10. Total cost includes all implicit opportunity costs. Calculate the pizza shop's marginal cost and marginal revenue at each rate of output and fill in the values in the table.
Total Hourly Output and Sales of Pizzas |
Total Hourly Cost ($) |
Total Revenue ($) |
Total Economic Profit ($) |
Marginal Cost ($) |
Marginal Revenue ($) |
0 |
6 |
0 |
0 |
- |
- |
1 |
10 |
10 |
0 |
||
2 |
12 |
20 |
8 |
||
3 |
13 |
30 |
17 |
||
4 |
15 |
40 |
25 |
||
5 |
19 |
50 |
31 |
||
6 |
25 |
60 |
35 |
||
7 |
33 |
70 |
37 |
||
8 |
43 |
80 |
37 |
||
9 |
55 |
90 |
35 |
||
10 |
71 |
100 |
29 |
How I calculate this?