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

Element of marketing planning, Element of Marketing Planning: marketing pl...

Element of Marketing Planning: marketing planning involves setting of objectives and making plans for how these objectives can be achieved. It involves deciding the policies strat

Swot analysis , Antonio's Choice Garlic is a sole proprietorship that g...

Antonio's Choice Garlic is a sole proprietorship that grows and sells premium garlic to retail stores.  This company was formed to fill a vacant niche in the garlic industry.  Garl

Advantages of the e - marketing, Advantages of the E - Marketing 1.    ...

Advantages of the E - Marketing 1.       High speed of interaction 2.       Low cost provision and maintenance 3.       Ability to provide mass customization 4.

Categorization of the advertising, Categorization of the advertising:- ...

Categorization of the advertising:- The objective of advertising differs under different situations. One advertiser may perhaps seek to generate immediate response from the cus

What is place strategies, What is Place Strategies? Explain about such in d...

What is Place Strategies? Explain about such in details. Place Strategies: Economic, reliable and efficient transportation and distribution of goods and services has play

What makes for a successful or effective marketing mix, Question: "Mark...

Question: "Marketing mix" is a general phrase used to describe the different kinds of choices organizations have to make in the whole process of bringing a product or service

Describe about advertising, Q. Describe about advertising? Meaning :-...

Q. Describe about advertising? Meaning :- It is derived as of the Latin word 'adverto' OR we can utter turn the customer towards the products. Definition: - As-per

Lg company, prodact mix of lg company

prodact mix of lg company

CASELET, How should Shoppers? Stop develop its demand forecasts? Caselet 2 ...

How should Shoppers? Stop develop its demand forecasts? Caselet 2 The

Operation plan, Operation Plan Description of company's Operation ...

Operation Plan Description of company's Operation Schovas which stands for spicy chocolate, vanilla ,strawberry ice cream, will open its first store in central market. Th

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