Peter's daily income (
) is
$120, to be spent in either or both food (
) and
fun (
) on the day. The market prices are, respectively,
(
)
$2/unit of food and (
) $6/unit of
fun. Considering Peter's preferences: What is the marginal rate of
substitution of food for fun (
at a certain level of utility) that would
maximize the utility Peter obtains from acquiring and consuming
food and fun? (Type the number in a decimal form.
Approximate your answer if necessary, with two significant digits
after the decimal point. Do not write the units.)
Homework Answers
The marginal rate of substitution of food for fun that would maximize the utility peter Obtains from acquiring and consuming food and fun is given by the price ratio of food for fun because at the point of utility maximization, the slope of the budget is equal to slope of the indifference curve because budget line is tangent to the indifference curve.
Thus, MRS at the point of utility maximization = - 2 / 6 = -0.33.
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Peter's daily income () is
$120, to be spent in either or both food () and...
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We were unable to transcribe this image41.65 TO 20.1 (Media 92) ATM 1.12 ** 3.4% YAKE 1965 07 2:22. 87 3. 35.8 COCA-COLA NYSE:KO TIMELINESS 4 Lowered 70115 h: 289 29 SAFETY . 1 New 727190 LEGENDS...
Please help with these questions
Question 6 0.8 pts In many competitive eating contests, participants must keep their food "down" in order to have a chance to win. If competitors are unable to meet this qualification, it is probable that marginal utility is Oslowing O negative. O decreasing. zero O positive Question 7 0.8 pts The additional satisfaction derived from consuming one more unit of a good or service is called the real-income effect. diminishing marginal utility marginal utility the...
Q5. Suppose that marginal
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and is consuming both X and Y, what must the marginal utility of Y
be?
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illustrate Eileen’s utilities from watching first-run movies in a
theater and from renting movies from a video store. Suppose that
she has a monthly movie budget of $36,...
Ignacio, Inc., had after-tax operating income last year of $1,198,000. Three sources of financing were used by the company: $2 million of mortgage bonds paying 4 percent interest, $4 million of unsecured bonds paying 6 percent interest, and $11 million in common stock, which was considered to be relatively risky (with a risk premium of 8 percent). The rate on long-term treasuries is 3 percent. Ignacio, Inc., pays a marginal tax rate of 30 percent. Required: 1. Calculate the after-tax...
2) compute contribution margin for each channel
3) compute break even point (in terms of number of orders and
dollars) for each distribution channel
(HINT - Fixed costs are all trade show expenses. Use
depreciation for the booth as a fixed cost. The booth cost should
be considered an investment not a fixed cost)
4) Calculate the number of orders at a target profit of
$100,000
5) Calculate the profitability for both the low and high order
estimates
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close the Charleroi plant? If so, how many suppliers should the
company employ and where should they be located?
We were unable to transcribe this imagedishwas resulted from a process that pressed together yers of thin, strengthened opaque glass. products if they were moved overseas and simply source the lower-cost private-label versions directly sales and marketing functions. THE MARKET Givsn its extensive experience with outsourcing the Giobal Sourcing Department at World Kitchen had...
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