Mathematics
Mathematics, 04.09.2020 19:01, BREBRE8932

Suppose a particular consumer has 8 birr to be spent on two goods, A and B. The unit price of good A is 2 birr and the unit price of B is 1 birr. The marginal utility (MU) she gets from consumption of the goods is given below. Quantity
TUA
TUB

1
36
30

2
24
22

3
20
16

4
18
12

5
16
10

6
10
4

Based on the cardinal analysis, what is the combination of the two goods that gives maximum utility to the consumer?
What is the total utility at the utility maximization level?

answer
Answers: 1

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Suppose a particular consumer has 8 birr to be spent on two goods, A and B. The unit price of good A...

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