Dmitri is in a band and likes to advertise upcoming shows using flyers he posts around the city. Making one black-and-white flyer costs $0.02, and making a flyer in color costs $0.10. Dmitri budgets $20.00 for making flyers each month. The following graph shows three of Dmitri's indifference curves for the number of black-and-white and color flyers that he makes. Use the green line (triangle symbol) to plot Dmitri's budget constraint. Then, place the black point (plus symbol) on the graph to indicate Dmitri's optimal consumption choice given that budget constraint. 1000 900 Budget Constraint 800 700 600 Optimum 500 400 + 300 + 200 + 100 0.2 flyers 1 flyer 25 50 75 100 125 150 175 200 225 250 COLOR FLYERS 5 flyers 17.5 flyers At the optimum that you indicated on the graph, Dmitri's marginal rate of substitution is equal to in black and white per flyer in color. BLACK-AND-WHITE FLYERS

Dmitri is in a band and likes to advertise upcoming shows using flyers he posts around the city. Making one black-and-white flyer costs $0.02, and making a flyer in color costs $0.10. Dmitri budgets $20.00 for making flyers each month. The following graph shows three of Dmitri's indifference curves for the number of black-and-white and color flyers that he makes. Use the green line (triangle symbol) to plot Dmitri's budget constraint. Then, place the black point (plus symbol) on the graph to indicate Dmitri's optimal consumption choice given that budget constraint. 1000 900 Budget Constraint 800 700 600 Optimum 500 400 + 300 + 200 + 100 0.2 flyers 1 flyer 25 50 75 100 125 150 175 200 225 250 COLOR FLYERS 5 flyers 17.5 flyers At the optimum that you indicated on the graph, Dmitri's marginal rate of substitution is equal to in black and white per flyer in color. BLACK-AND-WHITE FLYERS

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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