Rohan’s current marginal utility from consuming peanuts is 100 utils per ounce and his marginal utility from consuming cashews is 200 utils per ounce. If peanuts cost $0.10 per ounce and cashews cost $0.50 per ounce, is Rohan maximizing his total utility from the kinds of nuts? Enter your responses as whole numbers. At the current level of peanut consumption, Rohan receives: utils per dollar. At the current level of cashew consumption, Rohan receives: utils per dollar. Therefore, Rohan maximizing his total utility because MUp/Pp is MUc/Pc.
Rohan’s current marginal utility from consuming peanuts is 100 utils per ounce and his marginal utility from consuming cashews is 200 utils per ounce. If peanuts cost $0.10 per ounce and cashews cost $0.50 per ounce, is Rohan maximizing his total utility from the kinds of nuts? Enter your responses as whole numbers. At the current level of peanut consumption, Rohan receives: utils per dollar. At the current level of cashew consumption, Rohan receives: utils per dollar. Therefore, Rohan maximizing his total utility because MUp/Pp is MUc/Pc.
Chapter7: Consumer Choice: Maximizing Utility And Behavioral Economics
Section: Chapter Questions
Problem 6QP
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Rohan’s current
Enter your responses as whole numbers.
At the current level of peanut consumption, Rohan receives: utils per dollar.
At the current level of cashew consumption, Rohan receives: utils per dollar.
Therefore, Rohan maximizing his total utility because MUp/Pp is MUc/Pc.
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