Suppose that Melissa spends recreation time and money on two leisure activities: Tennis and fishing.The cost per hour of tennis (court fees)and per hour of fishing (boat rentals)is $4.The table below shows the total utility that Melissa derives from the two activities.
a)Complete the columns of marginal utilities.
b)Assume that Melissa has a budget of $20.To maximize her total utility,how much would she allocate her spending between the two activities? What is the resulting total utility?
c)At the end of the day,Melissa digs deep in her pocket and discovers an extra $4.If she allocates this additional spending between the two activities so as to maximize her total utility,what will be the final totals?
d)Suppose that Melissa's utility from the two activities remains unchanged the next day,when she arrives with $20 in her pocket.To her pleasure,she discovers that the hourly charge on court fees has decrease to $3.How will she allocate her expenditures in order to maximize her total utility?
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The act of calling public attention to products, services, or needs through various forms of media, with the aim of influencing consumer behavior.
Profits
The financial gain obtained when the revenue from business activities exceeds the expenses, costs, and taxes involved in sustaining the activity.
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A person or business that designs, makes, sells, and repairs jewelry and watches.
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A retail establishment that sells garments and apparel for individuals of all ages.
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