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From the data in Problem ABOVE, if the price of a cheeseburger is $2,.pdf
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From the data in Problem ABOVE, if the price of a cheeseburger is $2,.pdf

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From the data in Problem ABOVE, if the price of a cheeseburger is $2, the price of a bag of french fries is $1, and you have $6 to spend (and you spend all of it), what is the utility- maximizing combination of cheeseburgers and french fries? Suppose that you observe that total utility rises as more of an item is consumed. What can you say for certain about marginal utility? Can you say for sure that it is rising or falling or that it is positive or negative? (5 POINTS).

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From the data in Problem ABOVE, if the price of a cheeseburger is $2,.pdf

  1. From the data in Problem ABOVE, if the price of a cheeseburger is $2, the price of a bag of french fries is $1, and you have $6 to spend (and you spend all of it), what is the utility- maximizing combination of cheeseburgers and french fries? Suppose that you observe that total utility rises as more of an item is consumed. What can you say for certain about marginal utility? Can you say for sure that it is rising or falling or that it is positive or negative? (5 POINTS)
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