Answered

Welcome to Westonci.ca, where you can find answers to all your questions from a community of experienced professionals. Connect with professionals on our platform to receive accurate answers to your questions quickly and efficiently. Join our platform to connect with experts ready to provide precise answers to your questions in different areas.

A small organization is responsible for distributing two craft products made in a small community, these products are jam and bread. The marginal utility function for the jam is f(x) = 55–4x, and the marginal utility for the package of bread is given by g(x) = 37–x.
Find:
a) The total utility function of the jam.
b) The total utility function of bread.
c) If the consumer wants to buy 2 jars of jam and 3 packages of bread, which of the items will produce more utility.

Sagot :

MrRoyal

3 packages of bread would produce more utility than 2 jars of jam

The total utility function of the jam

The marginal utility function of jam is given as:

f(x) = 55 - 4x

Integrate the above function to determine the total utility function

f'(x) = 55x - 2x^2

Hence, the total utility function of the jam is f'(x) = 55x - 2x^2

The total utility function of bread

The marginal utility function of bread is given as:

g(x) = 37 - x

Integrate the above function to determine the total utility function

g'(x) = 37x - 0.5x^2

Hence, the total utility function of the bread is g'(x) = 37x - 0.5x^2

The items that produce more utility

We have:

Jam = 2 jars

Bread = 3 packages

Substitute 2 for x in f'(x) = 55x - 2x^2

f'(2) = 55 * 2 - 2 * 2^2

f'(2) = 102

Substitute 3 for x in g'(x) = 37x - 0.5x^2

g'(3) = 37 * 3 - 0.5 * 3^2

g'(3) = 106.5

106.2 is greater than 102

Hence, 3 packages of bread would produce more utility

Read more about marginal utility functions at:

https://brainly.com/question/15050855

#SPJ1

We appreciate your time. Please revisit us for more reliable answers to any questions you may have. Your visit means a lot to us. Don't hesitate to return for more reliable answers to any questions you may have. Discover more at Westonci.ca. Return for the latest expert answers and updates on various topics.