a. What are the relationships among marginal utilities, the marginal rate of substitution, and the slopes...
a. What are the relationships among marginal utilities, the marginal rate of substitution, and the slopes of indifference curves?
b. What are the relationships among marginal products, the marginal rate of technical substitution, and the slopes of isoquants?
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a. What are the relationships among marginal utilities, the
marginal rate of substitution, and the slopes...
Suppose that the marginal rate of substitution is 3 for goods x and y. Draw a...
Suppose that the marginal rate of substitution is 3 for goods x and y. Draw a set of indifference curves for goods x and y.
7. (4 Points) Describe what the marginal rate of substitution of x for Y (MRSxy) to...
7. (4 Points) Describe what the marginal rate of substitution of x for Y (MRSxy) to us about a consumer's preferences between the two goods. 8 (4 Points) Suppose you have preferences over two goods, bottles of wine (good X) and slices of pizza (good Y). Explain what it means that for the bundle A = (3, 15), the MRSxy = 2. 9. For this question, use the utility function U(X,Y)= XY. (a) (2 Points) What is the marginal utility...
The utility that Julie receives by consuming food F and clothing C is given by U(F,...
The utility that Julie receives by consuming food F and clothing C is given by U(F, C) = FC. For this utility function, the marginal utilities are MUF = C and MUC = F. a) On a graph with F on the horizontal axis and C on the vertical axis, draw indifference curves for U = 12, U = 18, and U = 24. b) Do the shapes of these indifference curves suggest that Julie has a diminishing marginal rate...
7. (4 Points) Describe what the marginal rate of substitution of X for Y (MRSxy) telle...
7. (4 Points) Describe what the marginal rate of substitution of X for Y (MRSxy) telle us about a consumer's preferences between the two goods. 8. (4 Points) Suppose you have preferences over two goods, bottles of wine (good X) and slices of pizza (good Y). Explain what it means that for the bundle A = (3.15), the MRSxy = 2 9. For this question, use the utility function U(X,Y)= XY. (a) (2 Points) What is the marginal utility of...
what is the marginal rate of substitution (MRS)? a) The ratio of the amounts of the...
what is the marginal rate of substitution (MRS)? a) The ratio of the amounts of the two goods at a point on the indifference curve. b) The amount of one good that the consumers is willing to trade for one unit of the other. c) The change in the consumers utility when one good is substituted for another. d) The slope of the indifference curve.
3.10. The utility that Julie receives by consuming food F and clothing C is given by...
3.10. The utility that Julie receives by consuming food F and clothing C is given by U(F, C) = FC. For this utility function, the marginal utilities are MUF = C and MUC = F. a) On a graph with F on the horizontal axis and C on the vertical axis, draw indifference curves for U = 12, U = 18, and U= 24. b) Do the shapes of these indifference curves suggest that Julie has a diminishing marginal rate...
2. What's the definition of marginal rate of substitution? What happens to the MRS as you...
2. What's the definition of marginal rate of substitution? What happens to the MRS as you move along a convex indifference curve? A linear indifference curve?
Explain the law of diminishing marginal returns Isoquants can be convex, linear or L-shaped. What does...
Explain the law of diminishing marginal returns Isoquants can be convex, linear or L-shaped. What does each shape tell you about the nature of the production function? What does each of these shapes of isoquants tell you about the marginal rate of technical substitution (MRTS)? 2. (a) (b) (c)
Given the indifference curve shown to the right: a. What is the marginal rate of substitution...
Given the indifference curve shown to the right:
a. What is the marginal rate of substitution are you move from point F to point G?
b. Would you expect the absolute value of the MRS to be higher lower or the same as you continue to substitute audio CDs for books?
You might think that when a production function has a diminishing marginal rate of technical substitution...
You might think that when a production function has a diminishing marginal rate of technical substitution of labor for capital, it cannot have increasing marginal products of capital and labor. Show that this is not true, using the production function Q = L2K2.
7. (4 Points) Describe what the marginal rate of substitution of x for Y (MRSxy) to us about a consumer's preferences between the two goods. 8 (4 Points) Suppose you have preferences over two goods, bottles of wine (good X) and slices of pizza (good Y). Explain what it means that for the bundle A = (3, 15), the MRSxy = 2. 9. For this question, use the utility function U(X,Y)= XY. (a) (2 Points) What is the marginal utility...
7. (4 Points) Describe what the marginal rate of substitution of X for Y (MRSxy) telle us about a consumer's preferences between the two goods. 8. (4 Points) Suppose you have preferences over two goods, bottles of wine (good X) and slices of pizza (good Y). Explain what it means that for the bundle A = (3.15), the MRSxy = 2 9. For this question, use the utility function U(X,Y)= XY. (a) (2 Points) What is the marginal utility of...
2. What's the definition of marginal rate of substitution? What happens to the MRS as you move along a convex indifference curve? A linear indifference curve?
Explain the law of diminishing marginal returns Isoquants can be convex, linear or L-shaped. What does each shape tell you about the nature of the production function? What does each of these shapes of isoquants tell you about the marginal rate of technical substitution (MRTS)? 2. (a) (b) (c)
Given the indifference curve shown to the right:
a. What is the marginal rate of substitution are you move from point F to point G?
b. Would you expect the absolute value of the MRS to be higher lower or the same as you continue to substitute audio CDs for books?
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