Eating a certain amount, Managerial Economics

Jeremy is an economics learner who loves hamburgers. He could eat any number of them for dinner, but he gets a really bad stomach ache after eating a certain amount. In fact, his utility function for hamburgers is given by

2287_aa.png

where Q is the number of hamburgers he eats for dinner (with Q ≥0).

(a) How many hamburgers can Jeremy eat before he gets a stomach ache (that is, before hisutility becomes negative)?

(b) Determine  the optimal number of hamburgers that Jeremy can eat as a function of p, the price per hamburger. (Hint: You have to maximize Jeremy's "net utility". That is, his utility minus the amount he spends on hamburgers.)

 

 

Posted Date: 3/26/2013 2:46:11 AM | Location : United States







Related Discussions:- Eating a certain amount, Assignment Help, Ask Question on Eating a certain amount, Get Answer, Expert's Help, Eating a certain amount Discussions

Write discussion on Eating a certain amount
Your posts are moderated
Related Questions
Objectives of ICAs Most schemes have as their main objective to stabilize and/or increase the world price of commodity, producers' incomes, foreign exchange earnings of export

The comparability principle Associations representing workers providing services - clerical, postal, teaching, etc. - have always attempted to  apply the "principle of comparab

Calculate point elasticity of demand for demand function Q=10-2p for decrease in price from Rs 3 to Rs 2 . Thanks a lot!

list all profession which generate personal income

Calculate point elasticity of demand for demand function Q=10-2p for decrease in price from Rs. 3 to 2

The production function of the personal computers for DISK Company is given by Q = 10 KL where Q is the number of computers produced per day, K s the hours of machine time,

Comment on the consequences of environmental degradation on the economy of a community.

Relevance of The Law of Diminishing Returns The law of diminishing returns is important in that it is seen to operate in practical situations where its conditions are fulfille

THE GOVERNED ECONOMY The governed economy contains central authorities often simply called "the government" - who levy taxes on firms and households and which engages in numer

Consider the following hypothetical story: Last spring, there was an outbreak of a nasty disease known as cyclosporiasis, which was eventually traced to Guatemalan raspberries. Tog