posted by .

If tbone steak cost 12.00 a lb and 1st util is 48, 2nd is 42, and 3rd util is 36 and we also buy ground round at 4.00 a lb and we derive 24 utils for the 1st lb, 16 for the second and 12 for the third and all we have to spend is 40.00 then how many lbs. of t-bone and ground round do we have to buy to be in consumer equilibrium ?

  • economics -

    To maximize utility, a consumer should purchase the item that provides the highest marginal utility per dollar. Then the next highest, then the next highest until the consumer runs out of money.
    So divide the MUs by the price and keep picking items until you run out of money.

    I get the consumer will choose 2.667 lbs tbone and 2 lbs ground round OR 2.333 lbs tbone and 3 lbs ground round. (both answers give the same total utility)

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Mathematrics

    Each diagram in the sequence is obtained by drawing of a 1 unit square on each side that forms the perimeter of the previous diagram, the 1st digram contains (1) square, the 2nd diagram (4) squares and the 3rd diagram (13) squares, …
  2. Physics

    I am a little confused about kinetic and potential energy regarding roller coasters. I understand that the first hill has to be the highest to gain the potential energy (PE). I hope someone can help with this example I just made up …
  3. science

    Is venus the 1st, 2nd, 3rd, 4th, 5th, 6th, 7th, 8th or 9th smallest planet?
  4. conditional sentence

    1. If the sound system hadn't failed,last night's show would have been better a. this is a correct sentence using the 1st conditional form b. this is correct sentence using the 2nd conditional form C. this is a correct sentence using …
  5. math

    6 runners run in a 500 yard dash. Prizes are awarded for 1st, 2nd, and 3rd place. Assume there are no ties, how many different orders can the runners finish 1st, 2nd, and 3rd?
  6. Grammar Advisor

    I just cannot figure out if these answers are correct or not. Can you please help me?
  7. Math.G.P

    The 1st term of a G.P is equal to x-2,the 3rd term is x+6 and the arithmetic mean of the 1st and 3rd terms stands in the ratio to the 2nd 5:3.find the value of x.
  8. mathematics

    find the number in an A.P such that the sum of 1st and 3rd term is 12 and the product of 1st and 2nd is 24
  9. maths

    a ball is dropped on the ground.The time interval between the 1st and 2nd bounce is 1.2s.The interval between the 1st and 2nd and 3rd bounce is 0.9s.Assume that successive time intevals form a geometric progression with an infinite …
  10. Java Programming

    Hey! Thanks for checking my question out! ____ 10. If x is a sorted array of int values, which of the following shows a call to a method of the Arrays class that will determine if the value 7 exists in the array?

More Similar Questions