Question
In: Economics
3. Assume that Rahim has $168 to spend on books and movies each month and that...
3. Assume that Rahim has $168 to spend on books and movies
each month and that both goods must be purchased whole (no
fractional units). Movies (X) cost $12 and books (Y) cost $30 each
on an average. Rahim’s preferences for movies and books are
summarized by the following information:
No. per Month
Movies
No. per Month
Books
TU
MU
MU/Px
TU
MU
MU/Py
1
56
1
150
2
94
2
270
3
124
3
360
4
148
4
410
5
160
5
450
6
168
6
470
7
172
7
480
a. Fill in the figures for marginal utility and marginal
utility per dollar for both movies and books.
b. Are these preferences consistent with the law of
diminishing marginal utility? Explain briefly.
c. Given the budget of $168, what quantity of books and what
quantity of movies will maximize Rahim’s level of satisfaction?
Explain briefly.
Solutions
Rahul Sunny answered 1 year agoRelated Solutions
Assume that Tom spends $190 on books and movies each month. Movies cost $10 each and...
Assume that Tom spends $190 on books and movies each month.
Movies cost $10 each and books cost $ 25 each. Tom’s total utility
for books and movies are presented in the following table.
Movies
Books
No. /month
TU
MU
MU/$
No. /month
TU
MU
MU/$
0
0
-------
----------
0
0
---------
-----------
1
22
1
50
2
42
2
80
3
52
3
100
4
57
4
110
5
60
5
116
6
62
6
121
7
63...
James has $100 to spend on books and all other goods. Books cost $20 each and...
James has $100 to spend on books and all other goods. Books cost
$20 each and James’ optimal consumption bundle is at 3 books and
$40 worth of other goods currently. James’ grandmom wants to give
James either a book or $20 for his birthday. Which gift does James
prefer? Explain why.
1. Suppose the amount of money UCLA students spend on movies during a one month period...
1. Suppose the amount of money UCLA students spend on movies
during a one month period observes normal distribution. A sample is
taken containing monthly movie spending in dollars for several UCLA
students as 66.72, 50.23, 40.57, 45.53, 60.45, 70.85, 57.49, and
53.46. Round your numbers to two decimal places. All the
calculation should be preceded with the formula used.
a. Calculate the sample mean, sample standard deviation, and
standard error.
b. Estimate the average monthly movie...
1. Suppose the amount of money UCLA students spend on movies during a one month period...
1. Suppose the amount of money UCLA students spend on movies
during a one month period observes normal distribution. A sample is
taken containing monthly movie spending in dollars for several UCLA
students as 66.72, 50.23, 40.57, 45.53, 60.45, 70.85, 57.49, and
53.46. Round your numbers to two decimal places. All the
calculation should be preceded with the formula used.
a. Calculate the sample mean, sample standard deviation, and
standard error.
b. Estimate the average monthly movie...
John’s MRS for reading books with watching movies is three movies per book regardless of the...
John’s MRS for reading books with watching movies is three
movies per book regardless of the amounts consumed.
a. Would he rather read two books and watch no movies, or read no
books and watch two movies?
Read two books and
watch no movies
Read no books and
watch two movies
b. What is the formula for his family of indifference curves?
U =
3(Movies)(Books)
U = Books +
3(Movies)
U = 3(Books) +
Movies
U = Min {Books,
Movies}...
If the population for the number of hours spend on reading a book each month is...
If the population for the number of hours spend on reading a
book each month is normally distributed. A random sample of 16
students in the reading club were selected and found that, they
spent an average of 70 hours each month with standard deviation of
20 hours. Construct a 95% confidence interval estimate for the
population mean hours they spend on reading books each month.
Cindy has $70 a month to spend on sport activities, and she can spend as much...
Cindy has $70 a month to spend on sport activities, and she can
spend as much time as she likes playing golf and tennis. The price
of an hour of golf is $20, and the price of an hour of tennis is
$10. The table shows Cindy’s marginal utility from each sport.
Hours
per month
Marginal Utility
from Golf
Marginal Utility
from Tennis
1
60
40
2
50
36
3
40
30
4
30
10
5
20
5
6
10...
21-B Book Street Books sells about 13701370 books each month. The circle graph displays the most...
21-B Book Street Books sells about 13701370 books each month.
The circle graph displays the most popular book categories, by
percentage, each month.
Categories of Books Sold
nonfiction 20.4%20.4%
computer 43%
science fiction 10%
sports 11%
mystery 15.6%
Step 1 of 5:
Find the number of nonfiction books sold each month. Round your
answer to the nearest integer.
Step 2 of 5:
Find the number of computer books sold each month. Round your
answer to the nearest integer.
Step 3...
The Harry Potter books and movies made a lot of money. A fan wanted to learn...
The Harry Potter books and movies made
a lot of money. A fan wanted to learn which of his favorite movies
made more money. He collected the amounts grossed in millions
during the first few days of releases of the movies
Harry Potter and the Half-Blood Prince
and Harry Potter and the Order of the
Phoenix. Use a 0.05 significance level to
test his claim that the Prince
movie did better at the box office.
Use the p-value method to...
The Harry Potter books and movies made a lot of money. A fan wanted to learn...
The Harry Potter books and movies made a lot of money. A fan
wanted to learn which of his favorite movies made more money. He
collected the amounts grossed in millions during the first few days
of releases of the movies Harry Potter and the Half-Blood
Prince and Harry Potter and the Order of the Phoenix.
Use a 0.05 significance level to test his claim that the
Prince movie did better at the box office.
Use the p-value method to...
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