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Standard XII

Economics

The Multiplier Mechanism

Given price o...

Question

Given price of Fruit beer Rs. 50 per glass and fruit juice Rs. 12 per glass and marginal utility derived from per glass of fruits beer being 150 units, a consumer of both will maximize its total utility if the marginal utility per glass of fruit juice is __________.

3 utils

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4 utils

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12 utils

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36 utils

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Solution

The correct option is A 36 utils
By consuming fruit beer of Rs 50 a consumer derives 150 units of marginal utility.
Therefore, by consuming fruit juice of Rs 12 a consumer gets( 150*12) / 50=36 utils.

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Given price of Fruit beer Rs. 50 per glass and fruit juice Rs. 12 per glass and marginal utility derived from per glass of fruits beer being 150 units, a consumer of both will maximize its total utility if the marginal utility per glass of fruit juice is __________.

The correct option is A 36 utilsBy consuming fruit beer of Rs 50 a consumer derives 150 units of marginal utility.Therefore, by consuming fruit juice of Rs 12 a consumer gets( 150*12) / 50=36 utils.

The correct option is A 36 utils
By consuming fruit beer of Rs 50 a consumer derives 150 units of marginal utility.
Therefore, by consuming fruit juice of Rs 12 a consumer gets( 150*12) / 50=36 utils.