Some interior bundle on the budget constraint

Assignment Help Microeconomics
Reference no: EM132476178

Let (x1, x2) be some interior bundle on the budget constraint, and suppose p1 = 4 and p2 = 2. If the marginal rate of substitution at (x1, x2) is -3, then is (x1, x2) optimal? Explain why or why not, and justify your answer with economic intuition. (Partial credit for a purely graphical argument.)

Reference no: EM132476178

Questions Cloud

Determine and prepare the adjusting entry at december : Prepare the adjusting entry at December 31. A review of the ledger of Splish Brothers Inc. at December 31 produces data for the preparation of annual
Compute the profit maximizing visits created by firm w : Compute the profit maximizing visits (represented by W) created by Firm W (assuming W behaves competitively in the output market, i.e., taking the price
Compute the amount of interest expense : Determine and Prepare consolidation worksheet consolidation entry as of December 31, 20X3, to remove the effects of the intercorporate bond ownership
Monopolistically competitive industry : In a monopolistically competitive industry, what do firms' demand curves also represent? Is it Average Revenue?
Some interior bundle on the budget constraint : Let (x1, x2) be some interior bundle on the budget constraint, and suppose p1 = 4 and p2 = 2. If the marginal rate of substitution at (x1, x2) is -3
Why incentives motivate people : Question 1: Why Incentives motivate people? Question 2: Why People benefit from trade?
Inward-looking strategies and debt crisis : What is the relationship between inward-looking strategies and debt crisis?
Compute an ending balance for each general ledger account : Compute an ending balance for each General Ledger account. Be sure to place a "total line" in each account and the label "End. Bal."
Describe discrete trial training and for errorless teaching : Describe an give an example for discrete trial training and for errorless teaching and correction for a student with autism. Use the cases presented.

Reviews

Write a Review

Microeconomics Questions & Answers

  Alternatively if regulator proposes to give away free

consider the case of a single polluter and regulator. the regulator knows the marginal benefit of pollution abatement

  Alternative history solid economic and financial foundation

After reading about the Golden Standard, William Jennings Bryan's emotional speech, write an essay analyzing what might have happened if William had won the 1886 election in the United States?

  Define hillary''s demand curve

The given table shows Hillary's demand schedule for Cherry Blossom Makeup. Graph Hillary's demand curve.

  The tulsa part particularly self-explanator

Professor's Overview of Module 10 The reading for this lesson (Bowe, sections "Tulsa" and first part of "Saipan" to the bottom of p. 184) brings us to the use and abuse of U.S. visa programs to bring workers into the United States, often from more un..

  The government will generate economic growth.

Explain why the Tea Party argument as to shrinking the government will generate economic growth.

  Determining the elasticity and products

Choose any five products that exist within an economic market then classify and describe their 'elasticity' (relatively inelastic, relatively elastic

  Value-added reseller

When we talk about a Value-Added Reseller, in the context of accounting and enterprise software, we are referring to an individual or business that:

  Suppose that national restaurant firm called bbq builds 10

assume that a national restaurant firm called bbq builds 10 new restaurants at a cost of 1 million per restaurant. it

  Draw a graph describing effects of federal reserve policy

In 2009, interest rates dropped sharply due to Federal Reserve policy to expand a sluggish economy. Draw a graph describing the effects of this Federal Reserve.

  What is the effect of the equilibrium price and quantity of

what is the effect of the equilibrium price and quantity of orange juice of the following events if they occur one at a

  Define real exchange rate as the relative price of houses

Suppose that houses are made of aluminum and bricks. Assume that in each country the price of a house is equal to its cost of production.

  Identify production level to maximize profitsexplain how to

identify production level to maximize profitsexplain how to balance fixed and variable costsapply economic cost

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