You have been given the assignment to read Beer School: Bottling Success at The Brooklyn Brewery. Upon completion of reading this informative book dealing with this real life rags to riches entrepreneurial….
Compute the marginal utility of X for each of the three consumers at each level of X.
Suppose that John is indifferent between consuming bundle A, which consists of 4 apples and 1 peach, and bundle B, which consists of 4 peaches and 1 apple. If John were given the choice between bundle A and bundle C, which contained 3 peaches and 2 apples, which should he pick? (Hint: Draw an indifference curve or two.) 5. The following table displays the total utility U(X) that corresponds to the number of units of X consumed by three different consumers (Auon, Barbara, and Camira), holding everything else constant:
a. Compute the marginal utility of X for each of the three consumers at each level of X. b. Based on the data in the table, can you tell whether any of these consumers are violating any of the standard assumptions about preferences? c. Is it possible that any of these three consumers have the same preferences, and that columns for the three consumers differ only because of the arbitrary units that are used to measure utility? Explain.