Q. 2- Critical Thinking QuestionsExpert-verified
What does Michel's experience imply about the idea of computing levels of utility derived from consumption and contrasting these utilities across individuals? Explain.
Utility computing allows clients to obtain computing resources on-demand and on a pay-per-use basis.
Utility computing is a model in which computing resources are provided to customers on a demand basis. Instead of a flat rate, the service provider charges only for the services provided.
A utility function is a representation that defines individual preferences for goods or services that are not explicitly monetary in value. In other words, it is a relative calculation of how much someone desires something.
Consider Figure 20-1. If this individual were to contemplate consuming a seventh digital app and experience a total utility of 15 utils as a consequence, what would be the resulting marginal utility? Would the points on the total utility and marginal utility graphs in panels (a) and (b) lie higher or lower to the right of the current endpoints of those graphs?
At a consumer optimum, for all goods purchased, marginal utility per dollar spent is equalized. A high school student is deciding between attending Western State University and Eastern State University. The student cannot attend both universities simultancously. Both are fine universities, but the reputation of Western is slightly higher, as is the tuition. Use the rule of consumer optimum to explain how the student will go about deciding which university to attend.
Suppose that at a higher satisfaction level than in Problem F-3, Sue's constant-utility preferences are as shown in the table below. Calculate the slope of Sue's new budget constraint using the information peovided in Problem F-5. Supposing now that the price of a soft drink falls to , find the combination of goods that satisfies Sue's utility-maximization problem in light of her budget constraint.
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