Question

Quantity of Sports App per Week: 1, 2, 3, 4, 5, 6
Marginal Utility of Sports App: 2000, 1200, 800, 500, 200, 50

Quantity of Game App per Week: 1, 2, 3, 4, 5, 6
Marginal Utility of Game App: 1800, 1600, 1200, 1000, 800, 600

Consumer utility will be---utils.

Answer 1

To determine the consumer utility, we need to calculate the total utility for each app and then add them together.

For the sports app:
Total utility = Marginal utility of sports app * Quantity of sports app per week
Total utility = (2000 * 1) + (1200 * 2) + (800 * 3) + (500 * 4) + (200 * 5) + (50 * 6)
Total utility = 2000 + 2400 + 2400 + 2000 + 1000 + 300
Total utility = 10100 utils

For the game app:
Total utility = Marginal utility of game app * Quantity of game app per week
Total utility = (1800 * 1) + (1600 * 2) + (1200 * 3) + (1000 * 4) + (800 * 5) + (600 * 6)
Total utility = 1800 + 3200 + 3600 + 4000 + 4000 + 3600
Total utility = 20200 utils

Consumer utility = Total utility of sports app + Total utility of game app
Consumer utility = 10100 + 20200
Consumer utility = 30300 utils