Reference no: EM131236557
What is the marginal utility of good Y? Suppose Jane has an income of $800. The price of good X is $10 and the price of good Y is $20.
e. As Jane moves down an indifference curve, what happens to the marginal utility of good X (increase, decrease – assume good X is on the horizontal axis). What happens to the marginal rate of substitution?
f. Suppose Jane’s utility is given by U = X + Y. How many units of the X good will she purchase? How many units of the Y good?
g. Suppose Jane’s utility is given by U = Min(X, Y). How many units of the X and Y good will she buy?
h. Suppose Jane’s utility is given by U = XY, where MUX = Y, and MUY = X. How many of the X and Y goods will she buy?
i. What is Jane’s total utility in part h? What is the marginal utility of each good?
j. Suppose the manufacturer of the X good gives a volume discount, so that the price of X is $5 after the consumer has consumed 30 units. Sketch the budget line, showing both intercepts.
k. Suppose the manufacturer of X offers consumers the opportunity to join a “savings club”. Club membership costs $80 but club members are able to purchase the X good for $8. Sketch the budget line, showing both intercepts.
|
The effect of environmental costs
: Stan Moneymaker needs 13 gallons of gasoline to top off his? automobile's gas tank. If he drives an extra eight miles? (round trip) to a gas station on the outskirts of town, Stan can save $0.06 per gallon on the price of gasoline. What are? Stan's s..
|
|
Find the gross domestic product-net exports and consumption
: Find the following: Gross domestic product. The current account balance. Net exports. Consumption.
|
|
Product profitability to focusing on customer profitability
: How can we account for the upheaval in orientation from focusing on product profitability to focusing on customer profitability? If it's such a good idea, why didn't companies operate from the perspective of building customer value 50 years ago?
|
|
What price would the team charge to students
: A minor league baseball team called the Billing Mustangs attracts both students and non-students as fans during the season, which runs from mid-April through August. How many tickets would the Mustangs sell to students, to maximize profit? What price..
|
|
What is the marginal utility of good
: What is the marginal utility of good Y? Suppose Jane has an income of $800. The price of good X is $10 and the price of good Y is $20. As Jane moves down an indifference curve, what happens to the marginal utility of good X (increase, decrease – assu..
|
|
Draw indifference curves to represent
: Draw indifference curves to represent the following types of consumer preferences:
|
|
Inverse demand curve was calculated for vodka
: The following inverse demand curve was calculated for vodka: where Q is pints of vodka and P is price per pint. Write the inverse demand curve for vodka when the quantity and price of vodka is measured in quarts (2 pints = 1 quart).
|
|
Calculate a linear demand curve for the restaurant
: A restaurant sells an average of 120 dinners a night at a price of $8. The restaurant manager believes that the elasticity of demand at this price is equal to -.8. Use this information to calculate a linear demand curve for the restaurant.
|
|
Firm size be impacted if there is alot of specific knowlesge
: How might the firm size be impacted if there is alot of specific knowlesge? Successful entrepreneurs have managed to conert some business that were characterized by specific knowledge into ones that could be operated only with general knowledge. This..
|