How to complete the missing cells in the filing table?

Question

if the price of a cheeseburger is $2, the price of a bag of french fries is $1, and you have $6 to spend (and you spend all of it), what is the utility-maximizing combination of cheeseburgers and french fries?

Genesis Allen · Accepted Answer

When the consumer consumes 2 units of cheese and 2 units of fries, his total utility is maximum.

First complete the table

Use this formula.

TU of the 3rd cheese burger = Total utility of the 2nd cheese burger + Marginal Utility of the 3rd cheese burger

This is the Formula to Calculate Total Utility
TUn = TU(n-1) - MUn
Where -
TUn = Total Utility of the nth unit
TU(n-1) = Total Utility of the (n-1)th unit
MUn = Marginal Utility of the nth unit

For example in our case –
Total Utility of the 3rd cheese burger = Total utility of the 2nd cheese burger + Marginal Utility of the 3rd cheese burger

This is the formula to calculate Marginal Utility –
MUn = TUn - TU(n-1)
Where -
MUn = Marginal Utility of the nth unit
MUn = Total Utility of the nth unit
TU(n-1) = Total Utility of the (n-1)th unit

After completing the table you have to find the Ratios - Marginal Utility of Cheese burger/ price of cheese burger and Marginal utility of French Fries/Price of French fries for each unit.

Place the values in a new column in the existing table and populate it with the values.

Keep in mind when he consumes nothing, his TU = 0 and MU = 0

Now you have to apply the conditions to get maximum Total Utility
1st condition

#(MU_b)/P_b=(MU_f)/P_f#

2nd condition

#(Q_b xx P_b)+(Q_f xxP_f)=# Total amount
[Quantity of cheese x Price of cheese) + (Quantity of Fries x Price of fries) = Total amount

According to our table when the consumer consumes 1 unit of cheese and 1 unit of fries, the first condition is satisfied and not the second condition.

When the consumer consumes 2 units of cheese and 2 units of fries, both the conditions are satisfied.

#(MU_b)/P_b=(MU_f)/P_f# ; 8 = 8

#(Q_b xx P_b)+(Q_f xxP_f)= #Total amount ; (2 x 2) + (2 x 1) =6
Hence when the consumer consumes 2 units of cheese and 2 units of fries, his total utility is maximum.

Total Utility = TU from 2 units of cheese + TU from 2 units of Fries = 36 + 18 = 54 units.

Law of Equi-Marginal Utility Part - 1

Law of Equi-Marginal Utility Part - 2

Law of Equi-Marginal Utility Part - 3

Abigail Allen · Answer

undefined To complete the missing cells in a filing table, you need to gather the necessary information for each category and input it into the appropriate cells. This may involve collecting data from various sources, organizing it according to the table's structure, and ensuring accuracy and consistency in the entries. Once all relevant information has been obtained, simply fill in the blank cells with the corresponding data.