What is meant by the application of the equimarginal rule

Assignment Help Microeconomics
Reference no: EM132148850

Question: Regarding utility maximization, what is meant by the application of the "Equimarginal Rule" and it's relevance to the marginal principle ? Discuss the concepts of utility (total & marginal), budget constraints and affordability. Explain the mathematical formula used in describing the Equimarginal rule?

Reference no: EM132148850

Questions Cloud

Suppose the market for candles is perfectly : Suppose the market for candles is perfectly competitive and is currently in equilibrium what will happen if candles are later linked to more houses catching on
Briefly describe key elements of strategic marketing plan : What are the key success factors for the marketing plan process for the company? Briefly describe the key elements of a strategic marketing plan.
What will the total annual costs to transfer funds be : FIN 3150 Case - Working capital management mini-cases. What will the total annual costs to transfer funds be? What is the total cost to maintain a cash account
What are the intended and unintended consequences : Recently, New York State increased minimum wages to $10.50/hr with a plan to increase over the next 3 years to $16/hr. What are the intended and unintended.
What is meant by the application of the equimarginal rule : Regarding utility maximization, what is meant by the application of the "Equimarginal Rule" and it's relevance to the marginal principle?
Explain why they are the same or why they are different : Your job is to list the common aspects of the male or female prison subculture in the respective column.
What is the user cost of capital : a. What is the user cost of capital? b. What is the value of the firm's desired capital stock?
Define relationship between production technology and cost : What is the relationship (if any) between production technology (i.e. productivity) and cost ? In your analysis define the various cost structures.
Ideas of modernization and progress : Why are ideas of "modernization" (cohn, 107) and "progress" so important to the post-World War II

Reviews

Write a Review

Microeconomics Questions & Answers

  Growth rate of nominal and real gdp

How is the real GDP calculated from the data and how is the growth rate of GDP calculated from the given data? Fill in the missing values of the growth rate of nominal and real GDP in the table.

  Explain the meaning of a four-firm concentration ratio

what is the meaning of a four-firm concentration ratio? interpret what a four-firm concentration ratio of 60 would

  Complete the demand schedule implied buy these data

Complete the demand schedule implied buy these data

  What did you find challenging in completing the scenario

What did you find challenging in completing the scenario (i.e., information network layout, etc.)? How does this additional information factor into effective distribution strategies?

  Discuss about the market rate of interest

Consider a firm (Firm X) with some monopoly power that is producing a good that may have positive network effects if a critical mass of consumers.

  What is the effect of increase in the reserve-deposit ratio

How does an increase in the currency-deposit ratio affect the money multiplier? What is the effect of an increase in the reserve-deposit ratio? Explain the direction of changes in both cases in terms of bank balance sheets and the ability of banks to..

  What are the production costs of your economics class

What are the production costs of your economics class? What are the fixed costs? The variable costs? What's the marginal cost of enrolling more students?

  Derive the foc and soc conditions of profit maximization

Derive the FOC and SOC conditions of profit maximization for this firm. Show that SOC is satisfied (impose necessary conditions). Which plant will have a greater increase in output? Please explain why.

  Do inventories act as a leading indicator of rgnp here

Which is more inflationary in the short run, investment spending or government spending? Which is more inflationary in the long run, investment spending.

  Calculate the eccentricity of its orbit

A satellite in polar orbit around the earth comes within 200 km of the North Pole at its point of closest approach. If the satellite passes over the pole once every 100 min, calculate the eccentricity of its orbit.

  Discuss the impact of such plant and compare their economies

Discuss the impact of such plants and compare their economies of scale with small businesses in your own hometown.

  What is the equilibrium level of employment per year

What is the equilibrium level of employment per year and the equilibrium wage rate in Badger Land

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