Bang for the buck of various items

Assignment Help Business Economics

Reference no: EM131160428

If consumers are rational, they will attempt to equate the "bang for the buck" of various items that contribute to their satisfaction within the constraints of some budget. That is, they will seek to...

maximize their marginal utility

Equate the ration of ( price / marginal utility ) for each item in their budget.

equate the ratios of (total utility / price ) for each item in their budget

maximize their total utility

Reference no: EM131160428

Questions Cloud

In price leadership oligopoly model : In a price leadership oligopoly model,

What is the discounted value : What is the discounted value of $1480 paid at the end of each year for nine years if interest is 5% compounded quarterly?

Technological innovations will cause : Technological innovations will cause:

Should louisville accept this one time special order : Louisville Corporation produces baseball bats for kids that it sells for $32 each.- Should Louisville accept this one-time special order? Show your calculations.

Bang for the buck of various items : If consumers are rational, they will attempt to equate the "bang for the buck" of various items that contribute to their satisfaction within the constraints of some budget. Equate the ration of ( price / marginal utility ) for each item in their budg..

Determining the onvolution formula : Suppose X ∼ Exp(λ) and Y ∼ Exp(µ) are independent. Assume that λ 6= µ. a). Let T = X + Y . Find fT (t) by using a convolution formula.

What is your optimal price and expected profit : Suppose that you have 2 buyers. The first buyer values your product at $10, and the second buyer values your product at $6. You estimate that the probability of getting a high valued customer is 40%. Your marginal costs are $3. What is your optimal p..

Provide details stating why the details in the business case : Must provide details stating why the details in the business case template are there and how this represents the corpus of data that would be submitted to obtain funding and project approval to get a project started.

Calculate the car depreciation and this year cost per mile : Rocky bought a used car four years ago for $4,590.00 cash (Rocky did not take out a car loan). Currently the car is valued at &2,227.00. This year Rocky drove his car 9,999 miles. He paid $977.12 for his annual insurance and $101.00 for the car's reg..

User Account

All Pages