Lakshani has $50 per season to spend on tickets to foot-ball games and tickets to soccer games. Each football tick-et costs $10 and each soccer ticket costs $5. She is thinking about buying 3 football tickets and 2 soccer tickets. Her marginal utility from the third football ticket is twice as much as her marginal utility from the second soccer ticket
When you post, please clarify how we can help you. This looks like the problem but there is no question as to what you'd like to know!
Sra
To find the marginal utility, we need more information about Lakshani's preferences or how much utility she derives from each ticket. The given information only mentions the ratio of her marginal utilities.
However, we can still assess the affordability of Lakshani's potential ticket purchase and determine if she can afford to buy 3 football tickets and 2 soccer tickets.
The total cost of buying 3 football tickets, each costing $10, is 3 x $10 = $30.
The total cost of buying 2 soccer tickets, each costing $5, is 2 x $5 = $10.
So, the total cost of buying 3 football tickets and 2 soccer tickets is $30 + $10 = $40.
Since Lakshani has $50 per season to spend on tickets, and the total cost of the tickets she plans to buy is $40, she can afford this purchase. She will have $50 - $40 = $10 left over.
Keep in mind that this answer assumes that Lakshani's preferences and utility can be represented linearly or by the given marginal utility ratio. But without more information, we cannot determine the actual utility she derives from each football or soccer ticket.