Business, 07.04.2020 16:57 rutza

Toby’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 10 cents per ounce and cashews cost 25 cents per ounce, is Toby maximizing his total utility from the kinds of nuts?

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Answer from: raider7831

Toby is not maximizing his utility because MUp/Pp > MUc/Pc

Explanation:

given data

marginal utility consuming peanuts = 100 utils per ounce

marginal utility consuming cashews = 200 utils per ounce

peanuts cost = 10 cents per ounce

cashews cost = 25 cents per ounce

solution

we know that Toby will have maximize utility when here

Marginal utility of peanut ÷ price of peanut = Marginal utility of cashew ÷ cash ..........................1

MU (p) ÷ P (p) = MU (c) ÷ P (c)

put here value

$\frac{100}{10} = \frac{200}{25}$

but here

10 > 8

so we can say Toby is not maximizing his utility because MUp/Pp > MUc/Pc

Answer from: izzy488

NO.

Explanation:

Given that,

Marginal utility from consuming peanuts = 100 utils per ounce

Marginal utility from consuming cashews = 200 utils per ounce

Cost of peanuts = 10 cents per ounce

Cost of cashews = 25 cents per ounce

Toby is maximizing his total utility from the kinds of nuts at a point where the marginal utility per cent for peanuts and marginal utility per cent for cashews are equalize.

Marginal utility per cent for peanuts:

$=\frac{Marginal\ utility\ from\ consuming\ peanuts}{Cost\ of\ peanuts}$

$=\frac{100}{10}$

= 10

Marginal utility per cent for cashews:

$=\frac{Marginal\ utility\ from\ consuming\ cashews}{Cost\ of\ cashews}$

$=\frac{200}{25}$

= 8

Therefore,

Toby is not maximizing his total utility from the kinds of nuts because the marginal utility per cent for peanuts is greater than the marginal utility per cent for cashews . So, there is a need to consume more of peanuts because the marginal utility per cent for peanuts is higher.

Answer from: Quest

answer; ///i believe the correct answer is (e) transformational;

Answer from: Quest

$527.7.if the following was the question $527.7 is the answer.students who are trying to raise funds have an agreement with a local pizza chain. the chain has agreed to sell them pizzas at a discount, which the students can then resell to families in the local community for a profit. it is expected that of the 500 families in the community, at most 70% will buy pizza. based on a survey of their personal preferences, the students believe that they should order no more than 120 cheese pizzas, no more than 150 pepperoni pizzas, and no more than 100 vegetarian pizzas. they also want to make sure that at least 20% of the total pizzas are cheese and at least 50% of the pizzas are pepperoni. they make a profit of $1.45, $1.75, and $1.98, respectively, for each cheese, pepperoni, and vegetarian pizza they resell. how many pizzas of each type should they buy?

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