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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?

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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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