What is optimal consumption bundle-optimal value of ribs

Assignment Help Business Economics

Reference no: EM131005339

Vasco likes spare ribs, R, and fried chicken, C. His utility function is: U(C, R) = 40R^2C. His weekly income is $180, which he spends on only ribs and chicken. If he spends $20 for a slab of ribs and $10 for a chicken, what is his optimal consumption bundle? That is optimal value of ribs (R) = _____ units.

Reference no: EM131005339

Questions Cloud

Based on his current earnings and expenses : John bought a home after graduation and he is saving for the closing costs ($3000) and down payment. To avoid paying mortgage insurance and to get a better interest rate, he needs a down payment of 20%. He can afford a monthly payment of $700 based ..

Assume the contract specified that nrc : Prepare the appropriate entries for both the lessee and lessor to record the second lease payment, executory costs, and depreciation (straight line) on December 31, 2011.

How that will affect the money demand curve : An increase in the supply of money will lead to a(n) ____ in equilibrium real GDP and a(n) _____ in equilibrium price level. To close an inflationary gap using monetary policy, the Federal Reserve should _____ the money supply to _____ investment and..

What is optimal consumption bundle-optimal value of ribs : Vasco likes spare ribs, R, and fried chicken, C. His utility function is: U(C, R) = 40R^2C. His weekly income is $180, which he spends on only ribs and chicken. If he spends $20 for a slab of ribs and $10 for a chicken, what is his optimal consumptio..

Compute net income before tax : Compute net income before tax - compute the unit contribution margin in dollars and the contribution margin ratio for one umbrella.

Express the firms marginal revenue as a function : The manager of a local monopoly estimates that the elasticity of demand for its product is constant and equal to -2. The firm’s marginal cost is constant at $15 per unit. Express the firm’s marginal revenue as a function of its price. Determine the p..

Find an equation for the indicated plane : For the curve r(t), find an equation for the indicated plane at the given value of t. r(t) = (t2 - 10)i + (2t - 3)j + 9k; osculating plane at t = 0

Find the angle between the velocity and acceleration vectors : The vector r(t) is the position vector of a particle at time t. Find the angle between the velocity and the acceleration vectors at time t = 0. r(t) = (6t2 + 5)i + (2t3 - 8t)k.

User Account

All Pages