Introduction to Economics 1 Deneme Sınavı Sorusu #1225333

Zeynep has the following utility function for hot dogs: U(H) = 10H - H2. Suppose that Zeynep is allowed to consume as many hot dogs as she likes and that hot dogs cost her nothing. What is the value of H at which she would stop consuming hot dogs?


0.1

0.5

5

10

50


Yanıt Açıklaması:

The answer is where MU=0 since it is the point where TU is at its maximum. Therefore we take the derivative of TU with respect to hot dogs. 10H - 2H=0, MU=5. The answer is C.

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