Quantity of tea mary consumes

Assignment Help Business Economics
Reference no: EM131856221

1. Consider Mary's utility function: U = 10C0.5T0.5, where C is the quantity of coffee and T is the quantity of tea Mary consumes. For each additional coffee Mary consumes, she receives additional utility equal to 5C-0.5T0.5 and for each additional tea she consumes, she receives additional utility equal to 5C0.5T-0.5. If the price per coffee is $10 and the price per tea is $5 and Mary has a weekly income of $500, find the bundle of coffee and tea that maximizes Mary's utility.

Reference no: EM131856221

Questions Cloud

Is the free-market system fair to everybody : Is the free-market system fair to everybody? Do you think it's fair to you? Give at least one example showing how the systema
What is the change in quantity demanded : What is the change in quantity demanded as a result of the price increase?
Production of air travel : Suppose air travel is a normal good. Also, jet fuel used in commerical airplanes is an input in the production of air travel. If consumers' incomes
Common cash flow items to be considered at time zero : Common cash flow items to be considered at TIME ZERO
Quantity of tea mary consumes : Consider Mary's utility function: U = 10C0.5T0.5, where C is the quantity of coffee and T is the quantity of tea Mary consumes. For each additional coffee
What did you like about the podcast : How did the content of the podcast connect to the textbook and/or class discussions? Identify at least two points of connection.
Plot the change in microbial activity in the treated soil : Calculate the percentage degradation of PAHs in the treated soil and the untreated soil on each sampling day - Display the results obtained in what you consider
Population caused by immigration : The increase in population caused by immigration is also causing both good and bad problems in the United States, causing some people to feel threatened
What are some of the social problems : What are some of the social problems that impact Native Americans and how will this influence your role of advocate and social change agent for Joe?

Reviews

Write a Review

Business Economics Questions & Answers

  Global regulation influence businesses operating

How does global regulation influence U.S businesses operating internationally? What are the major obstacles to global regulation?

  What price do you think this firm should charge

Illustrate what price do you think this firm should charge if it wants to maximize its short-run profit.

  Proactive motorola have done dissimilarly

Illustrate what might a more proactive Motorola have done dissimilarly had it correctly perceived the steps its rival Nokia would take.

  Supply-demand diagram of the market for beer without the tax

Suppose the federal government requires beer drinkers to pay a $2 tax on each case of beer purchased. Draw a supply-and-demand diagram of the market for beer without the tax. Show the price paid by consumers, the price received by producers, and the ..

  Hacker point of view concerning electronic access

How does the hacker point of view concerning electronic access to information differ from the law and from your point of view concerning access to information?

  Illustrate new equilibrium an increase expenditure

Illustrate what would be new equilibrium if re is an increase in autonomous import expenditure from 100 to 200 which result from an increase in currency exchange rate.

  Change in output and price per unit as a result of subsidy

A profit-maximizing monopolist named Edd faces a demand function given by q = 1000 - 20p, where p is the price of his output in dollars. He has a constant marginal cost of 20 dollars per unit of output. In an effort to induce Edd to increase his outp..

  A project has a net present worth

A project has a net present worth of - $14000 as of January 1, 2018. If a 9% interest rate is used, what is the project NPW as od December 31, 2015?

  Suppose economy is initially in long-run equilibrium

Suppose the economy is initially in a long-run equilibrium. And then a stock market crash causes aggregate demand to fall. What happens to output and the price level in the short run? What happens to the unemployment rate?

  What is output level where average variable cost

What is the output level where marginal cost is at minimum? What is output level where average variable cost is a minimum? What is the value of average variable cost and marginal cost at the output specified in the answer to part b?

  Explain how a chartered bank creates money

What benefits or worries will influence your decision to hold the $1000 as cash or to invest it in an interest-earning bond?

  Q1 illustrate what is a random walk explain how is halls

q1. illustrate what is a random walk? explain how is halls random-walk model of consumption related to the life-cycle

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