Jonathan''s preferences are characterized

Assignment Help Business Management
Reference no: EM13150590 , Length: 263 words

Microeconomics questions.

Q1. Jonathan's preferences are characterized by diminishing marginal rate of substitution. At his current consumption level Jonathan's marginal utility from beer is 5 and his marginal utility from Coke is 4. If Coke is placed on the horizontal axis, is Jonathan's current choice an "interior" optimum if the price of a can of beer is $2 and a can of Coke costs $1? Explain? If not what should Jonathan to obtain an interior solution

Q5. Bin is considering two cell phone plans. The first plan gives Bin up to 300 minutes of use, CP, for a set fee of $60 with each additional minute priced at 20 cents per minute. The second plan has no set fee, but charges 50 cents per minute. You have $100 per month to spend on cell phone services and a "composite" good ,C, priced at $1 per unit. 

a. Draw Bin's budget constraints under each plan, label all relevant points

Q6. Shen purchases two goods, x and y. With income of $600, Px is $4 per unit and Py is $5 per unit. 
a. Draw the Shen's budget constraint and label all relevant points [2 marks] 
b. Suppose the government imposes a tax on good x of $2 per unit, that is, the price of x would rise to $6. However, the tax is imposed only on the first 40 units of x purchased. Draw and appropriately label Shen's new budget line

Reference no: EM13150590

Questions Cloud

What is meant by the term index of cell number : Cortical cells in control wheat have a higher index of cell number than cortical cells in gamma-irradiated wheat; explain this finding in terms of cellular processes that may be taking place in the coleoptile.
Find sample size suggested by newspaper article statement : Percentage points in either direction from what would have been obtained by interviewing all voters in the United States." Find the sample size suggested by this statement.
Tax consequences of a property settlement : What issues should Marcia and Dave consider when formulating their divorce agreement? Solution: Marcia and Dave should consider the taxability of the transfer of the home to Marcia and the boat to Dave. That is, what are the tax consequences of a ..
Evaluate the cost recovery : Hazel purchased a new business asset (five-year property) on November 30, 2009, at a cost of $100,000. This was the only asset acquired by Hazel during 2009. On January 7, 2010, Hazel placed the asset in service. She did not elect to expense any o..
Jonathan''s preferences are characterized : Jonathan's preferences are characterized by diminishing marginal rate of substitution. At his current consumption level Jonathan's marginal utility from beer is 5 and his marginal utility from Coke is 4. If Coke is placed on the horizontal axis, is J..
Rate of a reaction the longer it takes to reach completion : Select all of the correct statements about reaction rates from the choices below. The lower the rate of a reaction the longer it takes to reach completion.
Probability selected cell phone bill is between given value : Suppose local monthly cell phone bills are normally distributed with a standard deviation $12. What is the probability that a randomly selected cell phone bill is between $30 and $55?
Do you agree with the us automakers assertion : Do you agree with the US automakers' assertion that having to pay healthcare and post-retirement workers to the labor force negatively impacted US comparative advantage in the auto industry? Why or why not?
Prepare a balance sheet for the general fund of city jordan : The unadjusted trial balance for the general fund of the City of Jordan

Reviews

Write a Review

Business Management Questions & Answers

  Show high possibility of organizational silence

Consider the issue of organizational silence. What factors in an organization would lead to a high possibility of organizational silence? What techniques would be useful in reducing the possible negative effects of organizational silence?

  Write a response on the best leader

Explain your respective roles and the context in which you interacted - Write a response on the best leader

  Has john violated the foreign corrupt practices act

John is a sales associate for Neptune Cyber Solutions, a manufacturer of medium sized Computer operating systems. John is overseas in the nation of Megalopia hoping to secure a contract with a large manufacturing organization.

  Checkpoint- the usa patriot act

Checkpoint- The USA patriot Act. Resource- Defending the Homeland. Comprise an opinion of at least 200 words defining how the scope of American law enforcement is changing as a result of the USA patriot Act as well as if you feel that changes are j..

  Explain organizational change and development

Organizational Change and Development - Paper on organizational development - plan of action based on the OD approach including: Scientific management, Ideal bureaucracy and Administrative management.

  Strategic change - pros and cons

Strategic Change: Pros and Cons - Evaluate the pros and cons of (extensive) strategic change In general

  Explain how will the wholesalers have to adjust their mixes

Examine the future growth and nature of wholesaling if chains, scrambled merchandising and the internet continue to become more important. Explain how will the wholesalers have to adjust their mixes?

  Web 2.0 and technology of the future

Web 2.0 and Technology of the Future - What are the most common security risks associated with mobile banking?

  Opportunity cost of producing a motor

With respect to overhead, what is the opportunity cost of producing a Model 350 motor?

  Professional analysis of the job requirements

Fill a professional analysis of the job requirements of a position, you know. Please an example of a matrix needs similar work if necessary.

  What type of benefits would you consider offering and why

If you were in a position to decide on a total rewards package to offer a team what type of benefits would you consider offering and why? How would you justify the cost?

  How does tows and risk play together

How could TOWS help to manage unstable environmental issues, like government or the price of fuel and how does TOWS and risk play together?

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