Assignment on Consumer

Behavior and Profit Maximization

MICROECONOMICS | C Hubber Lomibao

iego Aucena
erdie Lacuesta
arl Patrick Bangot
ce CyrilMoron
To solve the MUx 2 : Consumer Equilibrium

Check the
Table of TUx
TUx2 - TUx 1
To solve the MUx 2 : Consumer Equilibrium

Check the
Table of TUx
TUx2 - TUx 1
 THE
PROCESS
Answers to MUx Column:
To solve the MUy 2 :

Check the
Table of TUy
TUy 2 - TUy 1
To solve the MUy 2 :

Check the
Table of TUy
TUy 2 - TUy 1
 REPEAT

THE

PROCESS
Answers to MUy Column:
 To solve the MUz 2 :

Check
the Table
of TUz
TUz 2 - TUz 1
 To solve the MUz 2 :

Check
the Table
of TUz
TUz 2 - TUz 1
Answers to MUz Column:
To solve the MUx/Px:
Check the Table of MUx MUx ÷ Px
Budget = ₱33 Px = ₱2 Py = ₱3 Pz = ₱4
To solve the MUy/Py:
Check the Table of MUy MUy ÷ Py
Budget = ₱33 Px = ₱2 Py = ₱3 Pz = ₱4
To solve the MUz/Pz:
Check the Table of MUz MUz ÷ Pz
Budget = ₱33 Px = ₱2 Py = ₱3 Pz = ₱4
 Utility Schedule

Budget = ₱33 Px = ₱2 Py = ₱3 Pz = ₱4
1. To maximize satisfaction, the consumer should buy 7 units of x, 5 units of Y
and 1 units of Z.
2. The consumer spent P 14 on X, P 15 on Y, and P 4 on Z.
3. The consumer derived an additional satisfaction (MU) of 5 utility units on X, 5
utility units on Y, and 2 utility on Z.
4. The additional satisfaction (MU) per peso spent on X is 10 utility units, on Y 15
utility units and on Z 8 utility units.
5. The total satisfaction (TU) derived from the three product is 2 utility units.
To solve the TVC : Profit Maximizing Output
Check the Table of TC1 and TFC 1 TC 1 - TFC 1 = TFC
 To solve the TR : Profit Maximizing Output
Check the Table of Output 1 , 15 x Output 1= TR
multiply the
product is sold
at 15 The product
is sold at 15
1. Complete the following schedule,
assuming one unit of the product is
sold at 15
To solve the TR-TC : Profit Maximizing Output
Check the Table of TR 1 and TC 1 TR 1 - TC 1 = TR-TC
To solve the MC : Profit Maximizing Output
Check the Table of TC2 and TC 1 TC 2 - TC 1 = MC
To solve the MR : Profit Maximizing Output
Check the Table of TR 2 and TR 1 TR 2 - TR 1 = MR
2. Using the Totals Approach to
profit maximization, determine the
output wherein profit is maximized?
3. Using the Marginals Approach to
profit maximization, determine the
output wherein profit is maximized?
4. Graph the Total Revenue and Total
Cost schedule in one quadrant. Show
the biggest gap between the two.

Total Cost Total Revenue

200

150

100

50

0
1 2 3 4 5 6 7 8 9 10
5. Graph the Marginal Revenue and
Marginal Cost schedule? Show their
point of intersection?

Marginal Cost Marginal Revenue

50

40

30

20

10

0
1 2 3 4 5 6 7 8 9 10