The table shows Jerry\'s total utility from late and paperback books The price o

Question

The table shows Jerry's total utility from late and paperback books The price of a latto is $3, the price of a paperback is $3, and Jerry has $24 a weelk to spend Caloulate Jerry's marginal utility from the second late and marginal utility per dollar when he buys 2 lattes Calculate Jerry's marginal utlity from the frs paperback and marginal uility per dolar when he buys 1 paperback Lattes Paperback books Quantity Total per weekutility Quantity T per week utility 360 300 570 810 Answer to 1 decimal place 810 ley's marginal utiny bomthe second Ltde isunits The marginal uility per doila bom lthes when Jery buys 2 lates tunks per ery's marginal uvility from the first paperback ounit The marginal utlity per dollar from paperbacks when Jeny buys 1 paperback is unts per dolar Enter your answer in each of the be 40 0

Explanation / Answer

1. MU of 2nd unit = TU from 2nd unit - TU from 1st unit = 630 - 360 = 270

2. MU per dollar = MU of 2nd unit/Price of laffes = 270/3 = 90

3. MU from 1st unit = TU from 1st unit - TU from 0 unit = 300 - 0 = 300

4. MU per dollar = 300/3 = 100

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