2:56 To Do ch5 Detail Grade One lazy Sunday morning donuts bring you 8,6,2,1 muf

Question

2:56 To Do ch5 Detail Grade One lazy Sunday morning donuts bring you 8,6,2,1 muffins 12,6,4,2 and croissants 26,10,4,2 utils each for 1-4 units eaten respectively If this is your best friend's kitchen, what four would you have (not worrying about what is left over for anybody else)? These four bring how many total utils? What is your overall average util per item for what you ate? If instead this were a cafe and donuts are 50 cents with $1 muffins and $2 croissants and your friend orders you four muffins, how would you spend all of your $4 differently (you always do spend all your money!)? The order you chose brings you hovw many total utils versus four muffins? The last donut you ate brought you how many utils? How many from the last muffin you ate?, and last croissant? Courses Calendar To Do Inbox

Explanation / Answer

I would have croissants. These four bring me 26 + 10 + 4 + 2 = 42 utils

Average util per unit is 42/4 = 10.5

With $4 I would want to maximise my utility .

I would buy 1 donut, 1 muffin and 1 croissant because it would give me max utility (8+12+26 = 36) in $3 & 50 cents.Still 50 cents are left.

On 4 muffins I was getting 12 + 6 + 4 + 2 = 24 utils .

On Last donut I got 1 util , 2 utils on last muffin and 2 utils on 4 last croissant.

$2 gives 1util => 1/2 = 0.5 util per $ , in case of donut.

$4 gives 2util =>  2/4 = 0.5 util per $ , in case of muffin.

$8 gives 2util => 2/8 = 0.25 util per $ , in case of croissant.

Yes , if a fellow offers me a croissant for my first item , i will accept it.

Because if I have croissant in hand then I will be indifferent towards exchanging it .

And if I have muffin in hand then exchanging it would give more satisfaction.Because utility of croissant > utility of muffin.

And if I have donut, then exchanging it would give more satisfaction.Because utility of croissant > utility of donut.

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