Answered

IDNLearn.com: Your trusted source for finding accurate answers. Discover in-depth answers to your questions from our community of experienced professionals.

Joe has $49 to spend on apples and oranges. Given the information in the following table, is Joe maximizing utility?
Yes, Joe is maximizing his total utility. Marginal utility per dollar spent on each good is equal, and he has some of his income that he does not spend on apples or oranges that he may save. No, Joe is not maximizing his utility. If he spent more on oranges he could gain greater satisfaction per dollar spent. Yes, Joe is maximizing his total utility. Marginal utility per dollar spent on each good is equal, and he is spending his entire budget. No, marginal utility per dollar spent on each good is equal, but Joe has some money left in his budget which could be used to increase his utility,

Sagot :

Yes, given the information Joe is maximizing his total utility.

a) Joe's marginal utility per dollar spent on apples is 50.

b) Joe's marginal utility per dollar spent on oranges is 50.

c) The total amount of Joe's income that he spends on apples and oranges is $49.

Yes, Joe is definitely maximizing his total utility. The marginal utility per dollar spent on each good is​ equal, and he is spending his entire budget.

What is Marginal utility?

Marginal utility is the additional satisfaction or benefit that an individual receives when they increase their consumption of a particular good or service. It is the change in total utility as the amount of a good or service consumed increases by one unit. Marginal utility is used by economists to determine how much of a good or service people will choose to consume.

Therefore, Option C is correct.

To know more about marginal utility,

https://brainly.com/question/15305672

#SPJ1

We appreciate your contributions to this forum. Don't forget to check back for the latest answers. Keep asking, answering, and sharing useful information. IDNLearn.com is your go-to source for accurate answers. Thanks for stopping by, and come back for more helpful information.