Consider a consumer with a utility function U(X,Y) = 4vX + vỸ a) Explain what marginal utility is. Compute marginal utilities of X and Y. b) Evaluate whether marginal utilities of X and Y are diminishing or not. c) Compute marginal rate of substitution. What is this consumer's marginal rate of substitution when she is consuming 4 units of X and 64 units of Y. d) Provide an interpretation of the value of MRS you found in part (c). e) Evaluate whether this consumer has diminishing marginal rate of substitution or not.

Consider a consumer with a utility function U(X,Y) = 4vX + vỸ a) Explain what marginal utility is. Compute marginal utilities of X and Y. b) Evaluate whether marginal utilities of X and Y are diminishing or not. c) Compute marginal rate of substitution. What is this consumer's marginal rate of substitution when she is consuming 4 units of X and 64 units of Y. d) Provide an interpretation of the value of MRS you found in part (c). e) Evaluate whether this consumer has diminishing marginal rate of substitution or not.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

How can scarcity of resources be a problem to society
Why is business ethics a strategic consideration in organizational decisions?
a paragraph in the initial response in their own words, using microeconomic terminology.
how macrosystematics work?
Making decisions under conditions of uncertainty involves what factor?
How does the scarcity of resources affect the firm’s decision making? Justify your answer through discussing specific situations.
What are the goals of economic engineering?
Whose work on decision making received a 2002 Nobel Prize?
What is the difference between Gordon method and Brainstorming?
Read over these resources for writing good introductions and conclusions. t, revise the introduction and conclusion using what you've learned. But remember--you may NOT use the internet to find information. Use your own experience and knowledge. For this,write a few sentences about how you used the resources to revise your draft. Introductions and Conclusions--LARC : https://www.grammarly.com/blog/start-an-essay/ Introductions from Grammarly : https://www.grammarly.com/blog/start-an-essay/ Conclusions from Grammarly : https://www.grammarly.com/blog/how-to-write-a-conclusion/?gclid=Cj0KCQjwkt6aBhDKARIsAAyeLJ23T6pYsFTrmPFi6_R-EKRAFxRNyoXR9RujMH573K3WFks_fwGChdAaAmOHEALw_wcB&gclsrc=aw.ds Working part-time at my local Dairy Queen has given me firsthand experience of the challenges associated with a $9 /hour wage. Despite putting in 36 hours (about 1 and a half days) weekly, the paycheck hovers around $250-$260, highlighting a stark economic reality. This scenario underscores the…
Why underground economy is bad?