Table 53 Shows Sam's Marginal Utility for Goods A, B, C

question 80

Essay

Table 5.3 shows Sam's marginal utility for Goods A, B, C, and
D.

$\begin{array}{l}\text { Table } 5.3\\\begin{array}{cccccccc}\hline \mathrm{Q}_{\mathrm{A}} & \mathrm{MU} & \mathrm{Q}_{\mathrm{B}} & \mathrm{MU} & \mathrm{Q}_{\mathrm{C}} & \mathrm{MU} & \mathrm{Q}_{\mathrm{D}} & \mathrm{MU} \\& \mathrm{A} & & \mathrm{B} & & \mathrm{C} & & \mathrm{D} \\\hline 1 & 30 & 1 & 32 & 1 & 50 & 1 & 15 \\2 & 25 & 2 & 16 & 2 & 40 & 2 & 9 \\3 & 20 & 3 & 8 & 3 & 30 & 3 & 3 \\4 & 15 & 4 & 4 & 4 & 20 & 4 & 1 \\5 & 5 & 5 & 2 & 5 & 10 & 5 & 0\end{array}\end{array}$ Suppose the prices for Good A, B, C, and D are $5, $8, $20, and $3 respectively. If Sam's budget of $62, what is the Sam's consumption bundle?
What is his total utility?

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Definitions:

Time-Driven

A method or approach that bases calculations, actions, or operations on the passage of time, often used in costing and scheduling.

Activity-Based Costing

A costing method that allocates overhead costs based on each product's activities or consumption rather than a standard rate.

Capacity Analysis

The act of determining the amount of production capability needed by an organization to meet its products' shifting demands.

Activity-Based Costing

An accounting technique that pinpoints activities within a company and allocates the expenses of each activity to every product and service based on their actual usage.