Absolute value-current consumption bundle

Assignment Help Business Economics

Reference no: EM13862571

The absolute value of Mars' MRS at his current consumption bundle is strictly greater than 2. Mars has convex preferences. Which of the following statements is (are) true? Justify your answer graphically.

1. Taking away some of good 1 and giving Mars 2 units of good 2 for each unit of good 1 taken away will necessarily make him worse o.

2. Taking away some of good 1 and giving Mars 2 units of good 2 for each unit of good 1 taken away will necessarily make him better o.

3. Giving Mars some of good 1 and taking away 2 units of good 2 for each unit of good 1 he is given will necessarily make him worse o.

4. Giving Mars some of good 1 and taking away 2 units of good 2 for each unit of good 1 he is given will necessarily make him better o.

Reference no: EM13862571

Questions Cloud

Estimate the number of fast shut-downs the reactor : When a fast-breeder reactor is shut down quickly, the temperature of the surface of a number of components drops from 600°C to 400°C in less than a second. These components are made of a stainless steel and have a thick section the bulk of which r..

What evolutionary process should universities be looking : Who is managing the customer of the University?

Data gathering and factual analysis : Design a formal process to determine if ideas that are presented are worthy of market testing. Include and explain the following: Likely sources of new product or business ideas and Data gathering and factual analysis

Evaluate the importance of measuring storage efficiency : Evaluate the importance of measuring storage efficiency in an organization's storage system

Absolute value-current consumption bundle : The absolute value of Mars' MRS at his current consumption bundle is strictly greater than 2. Mars has convex preferences. Which of the following statements is (are) true? Justify your answer graphically.

Calculate gdp via the expenditure approach : Using any relevant information below, calculate GDP via the expenditure approach. Nominal GDP in Nowhereland in 2002 and 2003 increased from $4 trillion to $4.8 trillion. Can you say that the production of goods and services in Nowhereland has increa..

Rakesh the managing director of rustam : Rakesh the Managing Director of Rustam Ltd. needs to get sedentary fees for appearing the Board conferences over and above his pay. Is this lawfully allowable? Advice, presume you are the business secretary of Rustam Ltd.

Identify the ideal target market for coca-cola : Identify the ideal target market for Coca-Cola principal product "Coca-Cola". Include the following: Provide a specific description of the target market, which should be measurable, accessible, sustainable, differentiable, and actionable

User Account

All Pages