10 Suppose that you are a utility maximizer and so is your economics instructor What can you conclude about your respective marginal rates of substitution for movies and concerts? NUMERICAL PROBLEMS The table shows the total utility Joseph derives from eating pizza in the evening while studying Pieces of pizza/evening Total Utility 0 30 48 60 70 78 80 76 How much marginal utility does Joseph derive from the third piece of pizza? After eating how many pieces of pizza does marginal utility start to decline? If the pizza were free, what is the maximum number of pieces Joseph would eat in an evening? On separate diagrams, construct Joseph’s total utility and marginal utility curves for pizza Does the law of diminishing marginal utility hold? How you know? Suppose the marginal utility of good A is 20 and its price is $4, and the marginal utility of good B is 50 and its price is $5 The individual to Attributed to Libby Rittenberg and Timothy Tregarthen Saylor URL: http://www.saylor.org/books/ Saylor.org 405