7.A college football coach says that given any two linemen A and B, he always prefers the one who is bigger and faster. Is this preference relation transitive? Is it complete? 8.Explain why convex preferences means that “averages are preferred to extremes. 9.If good 1 is a “neutral,” what is its marginal rate of substitution for good 2?
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.
7.A college football coach says that given any two linemen A and B, he always prefers the one who is bigger and faster. Is this preference relation transitive? Is it complete?
8.Explain why convex preferences means that “averages are preferred to extremes.
9.If good 1 is a “neutral,” what is its marginal rate of substitution for good 2?
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