Marginal rate of substitution, Marketing Management

Assignment Help:

Michael Jordan lives in a world with only two goods:  basketballs and Gatorade.  Basketballs cost $10 each. Gatorade costs $2 per bottle. Point A on the graph below represents Jordan's optimal consumption point given these prices and his income.

491_marginal rate of substitution.png


a. Calculate Jordan's marginal rate of substitution of Gatorade for basketballs at point A, and explain in words what this number means.

Suppose now that the price of Gatorade drops to $1/bottle. Jordan's new budget constraint is represented by the line BG.

b. True or False. Explain.

Jordan's new optimum consumption bundle could fall between points B and C or between points F and G if either basketballs or Gatorade is an inferior good.


Related Discussions:- Marginal rate of substitution

Marketing macroenvironment, Macro environment: macro environment refers to...

Macro environment: macro environment refers to those factors, which are not concerned to the immediate environment. These factors are external to the company and are quite uncomfo

Describe the concept of bank marketing, Question 1: (a) "The only typ...

Question 1: (a) "The only type of risk that that exists in the banking sector is credit risk". Do you agree? (b) Describe  the concept of bank marketing. Question 2:

The role of the marketing manager, QUESTION (a) "The role of the Market...

QUESTION (a) "The role of the Marketing Manager in the strategic marketing planning process is critical." Discuss this statement by giving suitable examples where appropriate.

Supply and demand framework, The market for labor can be studied use a supp...

The market for labor can be studied use a supply and demand framework.  The demand for labor is from employers who use labor to produce goods and services.  The supply of labor is

Allocation of responsibility, Responsibility for investigating injuries va...

Responsibility for investigating injuries varies but is typically divied among the insurance company the legal department and the appropriate technical departments. Irrespect

Prepare a presentation on new products, Question 1 (a) Relate the impor...

Question 1 (a) Relate the importance of well linking any visual aid to its specific message and explain the functions that visual aids can have. (b) The marketing officer of

HENRY ASSAEL MODEL, Q-2 Explain Henry Assael Model of buying decision beh...

Q-2 Explain Henry Assael Model of buying decision behaviour along with the diagram”.

Types of intermediaries, Types of intermediaries: 1. Sole selling agen...

Types of intermediaries: 1. Sole selling agent\marketer: when a manufacture prefers to stay of the marketing and distribution task he appoints a suitable agency as his sole s

Describe kpi, Identify Key Performance Indicators (KPIs)    1.      Unde...

Identify Key Performance Indicators (KPIs)    1.      Undertake liaison with managers, engineers and other staff responsible for designing and/or implementing change 2.

What is brand personality, What is Brand Personality? Brand Personali...

What is Brand Personality? Brand Personality: In totality brands comprises more meaning and significance than tangible or perceivable product some to give. It is a highly

Write Your Message!

Captcha
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