How many dozen of each type of cookie will tony buy

Assignment Help Econometrics
Reference no: EM13243938

Tony spends $36 per month on cookies. For him, chocolate chipcookies and peanut butter cookies are perfect substitutes.Chocolate chip cookies are $4 per dozen and peanut butter cookiesare $3 per dozen.

a) What is Tony's marginal rate of substitution ofchocolate chip cookies for peanut butter cookies? (Assume that chocolate chip cookiesis the good X which is on the horizontal axis)

b) What is the slope of his budget line?

c) How many dozen of eachtype of cookie will Tony buy in a given month if he wants tomaximize his utility?

Reference no: EM13243938

Questions Cloud

What is the purpose of the anova : The discussion surrounding the ANOVA is very important. This is a widely utilized statistical tool. What is the ANOVA? What is the purpose of the ANOVA? What role does variation have in the discussion? What is the purpose of the F distributio..
What is the period of revolution helium ion : A helium ion (Q = +2e) whose mass is 6.6×10?27kg is accelerated by a voltage of 3700V, What is its speed? Express your answer to two significant figures and include the appropriate units
Is immigration the answer for industrialized countries : Given the scenario, your role and the information provided by the key players involved, it is time for you to make a decision.
Find the value of x that gives maximum profit : a company uses solid waste for fuel in theproduction of electricity. The cost Y in dollars per hour toproduce electricity is: Y=12 + 0.3X +0.27X2 ,where X is in megawatts.
How many dozen of each type of cookie will tony buy : Tony spends $36 per month on cookies. For him, chocolate chipcookies and peanut butter cookies are perfect substitutes.Chocolate chip cookies are $4 per dozen and peanut butter cookiesare $3 per dozen.
The lunch you buy in your school cafeteria : The lunch you buy in your school cafeteria is classified as: a) a consumer durable. b) a consumer nondurable. c) a service. d)either a consumer nondurable or a service because it fits into both categories.
Net domestic product is usually preferred to gdp by economis : Net domestic product is usually preferred to GDP by economists because net national product:
What is annual equivalent value of geometrically increase : What is the annual equivalent value of a geometrically increasing series of payments which has first-year base of $10,000 increasing by 12% per year for 10 years with an interest rate of 6% compounded monthly
Explain the mass spectrum fragment that is observed : Given the parent compound, draw the mass spectrum fragment that is observed at m/z 91. Include any hydrogen atoms and the charge.

Reviews

Write a Review

Econometrics Questions & Answers

  What is the maximum investment cost allowed for lift system

A Chinese official is considering construction of a gondola lift system that transports visitors from the tops of the mountain peaks to the valley at one of the National Forrest Parks in China. The lift system is expected to last for 20 years.

  What price will it charge for daytime tickets

Cinema Theater has estimated the following demand functions for its movies: Daytime demand, QD = 400 - 50 PD Zighttime demand, QN = 200 - 20 PNThe marginal cost of serving another customer is $5 and its fixed costs are $100.

  What is the eaw of the project

adding a turning lane to a busy intersection will cost 2 million dollars, but it is estimated that it will save motorists a total of 300000 dollars a year for the next 10 years. a government agency wants to know if the annual benefits outweight ..

  What output level will yield the largest possible profit

What is the marginal cost per unit for the first 50 units $ per unit for the first 50 units. What is the marginal cost for units 51 and higher? $ per unit for subsequent units. For each of the first 50 units, does MR exceed MC For the units 51 and..

  Determine the expected annual net savings

You have purchased equipment costing $20,000. The equipment will be used for two years, and at the end of two years, its salvage value is expected to be $10,000. The equipment will be used 6,000 hours the first year and 8,000 hours the second year..

  Calculate output-price and profit under the monopoly

Joe's t-shirt shop is located in a small college town. the majority of business is custom t shirts for university book stores. as a sideline, they also sell t-shirts locally. the local demand is Q=200-5P. calculate output, price, and profit under ..

  How much will you need to put down in order to buy the hous

You are going to purchase a house which costs $250,000. Your annual income is currently $60,000. The bank you are going to get the mortgage from uses a 28% qualifying rate (a maximum of 28% of your gross monthly income can go to your monthly payme..

  Compute accounting cost and accounting profit

She estimates that the total cost of operating the office is approximately $48,000 per year. The potential revenue is estimated as $100,000 per year. Compute accounting cost, accounting profit, conomic cost, and economic profit.

  Write down the payoff matrix and find all nash equilibria

One unit of object is going to be sold via auction. There are two bidders, A and B. Their willingness to pay are known to be either of 10,20,30,40,50 and bids are also restricted to those values.

  By how much does output increase or decrease

Given the following information calculate the multiplier effect on Y, i.e. by how much does output increase or decrease by (Y), if Unless told otherwise, assume other factors are held constant. For example if you are told that only government spend..

  Why did one measure increase while other measure decrease

Real GDP was $4,179 billion in year 1 and $4,848 billion in year 2. IN contrast, real GDP per capita in Year 1 was $19,261, but in year two it was only $19,162. Why did one measure increase while the other measure decreased

  Determine the total tax paid by producer

Suppose the demand for a product is given by P = 50 - Q. Also, the supply is given by P = 10 + 3Q. If a $12 per unit excise tax is levied on the buyers of a good, after the tax,what is the total quantity of the good sold.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd