You Have Just Spent Two Hours Studying Microeconomics and This

question 16

Essay

You have just spent two hours studying microeconomics and this has made you very hungry.You have $10 to spend on a snack and decide to go to Taco Bell.Putting your newly acquired economics knowledge to use,you have developed the following table to assist with your purchase decision: $$\begin{array} {c}\quad\quad { \text { Double Decker Tacos } } \quad\quad { \text { Chicken Burrito Supremes } } \\{ ( \mathrm { P } = \$ 1 ) } \quad\quad\quad\quad\quad\quad\quad\quad { ( \mathrm { P } = \$ 2 ) } \\\begin{array} { | c | c | c | c | c | c | c | c | } \hline \text { Q } & \text { TU } & \text { MU } & \text { MU/P } & \text { Q } & \text { TU } & \text { MU } & \text { MU/P } \\\hline 0 & 0 & & & 0 & 0 & & \\\hline 1 & 20 & & & 1 & 28 & & \\\hline 2 & 34 & & & 2 & 46 & & \\\hline 3 & 44 & & & 3 & 54 & & \\\hline 4 & 48 & & & 4 & 56 & & \\\hline 5 & 48 & & & 5 & 56 & & \\\hline 6 & 42 & & & 6 & 52 & & \\\hline\end{array}\end{array}$$ (a)Fill in the missing values in the table above.
(b)If you bought 6 tacos and 2 burritos are you maximizing your utility? Explain.

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Definitions:

Government Regulation

The act of controlling business behavior through rules or laws, enacted to protect public interest.

Cooperative Factories

Manufacturing establishments run by a collective group of workers who share the profits and management responsibilities.

Seventeenth Amendment

An amendment to the U.S. Constitution, ratified in 1913, that established the direct election of U.S. senators by popular vote, replacing their previous selection by state legislatures.

Direct Election

A system of choosing political officials where voters directly cast ballots for the persons or party candidates they desire to see in office, without the intervention of electors or intermediaries.