5. Draw indifference curves to represent the following types of consumer preferences: a. I like both peanut butter and jelly and always get the same additional satisfaction from an ounce of peanut butter as I do from 2 ounces of jelly. b. I like peanut butter but neither like or dislike jelly c. I like peanut butter but dislike jelly
Marginal Rate of Technical Substitution
MRTS reaches a manufacturer when a part of the product is lowered to sustain the manufacturing level when the other part is extended. It is the level of the quantity that is lowered when one extra volume is used, and the output is unchanged.
Preferences and Utility Analysis
Before understanding what is preference and utility analysis, it is very important to understand the terms preference and utility separately.
5. Draw indifference
a. I like both peanut butter and jelly and always get the same additional satisfaction from an ounce of peanut butter as I do from 2 ounces of jelly.
b. I like peanut butter but neither like or dislike jelly
c. I like peanut butter but dislike jelly
d. I like peanut butter and jelly but I only want 2 ounces of peanut butter for every ounce of jelly.
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