B. if lucinda has only $18 to spend and the price of kewpie dolls and the price of beanie babies are both $6, how many of each would lucinda buy if she were rational? 0 kewpie dolls and 3 beanie babies 3 kewpie dolls and 0 beanie babies 2 kewpie dolls and 1 beanie baby 1 kewpie doll and 2 beanie babies

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04-09-2017
Mathematics

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B. if lucinda has only $18 to spend and the price of kewpie dolls and the price of beanie babies are both $6, how many of each would lucinda buy if she were rational? 0 kewpie dolls and 3 beanie babies 3 kewpie dolls and 0 beanie babies 2 kewpie dolls and 1 beanie baby 1 kewpie doll and 2 beanie babies

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nobillionaireNobley nobillionaireNobley · Answer 1 · 2017-09-12T08:45:42+02:00

Given the table below comparing the marginal benefit Lucinda gets from Kewpie dolls and Beanie Babies.

[tex]\begin{tabular} {|p {2cm}|p {2cm}|p {2cm}|p {2cm}|} \multicolumn {4} {|c|} {Lucinda's Kewpie Doll and Beanie Baby Marginal Benefits}\\[1ex] \multicolumn {2} {|c|} {Kewpie Dolls}&\multicolumn {2} {|c|} {Beanie Babies}\\[1ex] 1&\$15.00&1&\$12.00\\ 2&\$12.00&2&\$10.00\\ 3&\$9.00&3&\$8.00\\ 4&\$6.00&4&\$6.00\\ 5&\$3.00&5&\$4.00\\ 6&\$0.00&6&\$2.00\\ \end{tabular}[/tex]

If lucinda has only $18 to spend and the price of kewpie dolls and the price of beanie babies are both $6,

Lucinda will buy the combination for which marginal benefit is the same.

Therefore, Lucinda will buy 2 kewpie dolls and 1 beanie baby, if she were rational.