e utility function for this economy is u(x,y) = xy. What is the optimal basket (x,y) for this econo %3D produce? 5 (10, 380) D (50, 100) O (100, 200)
Q: Draw graph if n is 20 and p is 0.60
A: Given: Number of trials (n) = 20 Probability of success (p)=0.60
Q: 5.18. Netflix demand elasticity. The price elasticity of demand for Netflix is −1.24. Is demand…
A: The price elasticity of demand is the change in the demand level for the change in price. Price…
Q: Define marginal utility. (50 words)
A: Utility means the satisfaction that a consumer gets after the consumption of a good or service. It…
Q: At the new fishing quota, what is the quota rent per pound of Bluefin tuna? Suppose the average…
A: Economic rent refers to the price different between he demand and supply at the particular level of…
Q: Consider an economy with two goods, consumption c and leisure 1, and a representative consumer. The…
A: The consumer's preferences over consumption and hours of work can be represented by the utility…
Q: QUESTION 1 Given the Budget of $1000 P of X=10 10 Q of X 0 10 20 30 40 .50 60 70 80 90 TU of X (10s)…
A: Utility is the level of satisfaction, or a measure of satisfaction, that consumers get by consuming…
Q: Adam is thinking about going back to university as a full-time student. For the last 5 years, he has…
A: Person A, confronts a life-altering decision: either to go for a full-time academic degree. The…
Q: 2. Below is a tabular data of price and quantity demand and quantity supply for banana que. Qd Qs 10…
A: d) Producer surplus=12(15-0)(30-0)…
Q: Consider the utility function U(x, y) = x^4 + y^2 (a) What happens to the marginal utility of x as y…
A: U(x,y) = x4 + y2.
Q: A manufacturing firm has budgeted 40 thousand per month for labor and materials. If $x thousand is…
A: N(x,y) = 2xy-6y -------> production function Where N is the monthly output (in units) x is the…
Q: Hi, just wondering why (1+r) is shown in the budget constraint, rather than 1/(1+r
A: In the context of economics and personal finance, a budget constraint is a basic concept that…
Q: While deriving consumer's equilibrium, what is given? (a) Income of the consumer (b) Price of the…
A: When a consumer purchases goods and services, he/she wants to attain maximum satisfaction from the…
Q: Suppose that the production function is given by Y=F K, N=A Ka L1-a Where a<1, Y denotes the output,…
A: Given that; Y=F( K), N=A Kα L1-α gy=gA+αKgK/L gA=nkgK/Y+(1-nK)gY/L In per capita terms…
Q: Hella the Greek's preferences can be described by the utility function U(x, y) = (x^1/2 + 3^1//2)^2.…
A: Hella the Greek's PreferencesLet's analyze Hella's preferences based on her utility function:(a)…
Q: Determine the marginal productivity functions, and evaluate them when I Interpret the results. 4 and…
A: Marginal product is the change in output level due to the increment of an additional unit of input.
Q: 3) For each utility function, determine the marginal utility with respect to x, marginal utility…
A: A utility function in economics is a mathematical representation of a consumer's preferences or…
Q: Complete the table below: Output Total Cost (RM) Total variable cost (RM) Total fixed cost (RM)…
A: In the economics, the cost of production, which comprises expenses of many kinds, is incurred during…
Q: A) Complete the following table B) Illustrate the following variable by graph: (TFC, TVC, TC) Q TFC…
A:
Q: Total utility (utils) 0 80 120 148 160 155 Quantity consumed per day 0 1 2 3…
A: Quantity consumer per day Total utility (utils) 0 0 1 80 2 120 3 148 4 160 5 155
Q: Question 1. Suppose it costs XYZ Airline 120,000 dollars to fly its 500 - seater A380 passenger…
A: Average cost per seat = Total cost / Number of seats
Q: Suppose Steve derives 3 units of utility from consuming either 1 cup of milk or 2 glasses of apple…
A: Steve derives 3 units of utility from consuming either 1 cup of milk or 2 glasses of apple juice.…
Q: Suppose you have a linear optimization model where you are trying to decide which products to…
A: The key aspects of the business challenge you're trying to solve are translated into an optimization…
Q: Graph the isocost function and derive the linear equation associated with it. Budget=$100O, PK=$20…
A: We are going to illustrate the possible cost functions with respect to changing price ratios to…
Q: (a) What do you mean by inventory carrying cost and ordering cost?
A: Inventory, often known as merchandise, refers to items and commodities that a company keeps on hand…
Q: An individual consumes products X and Y and spends $30 per time period. The prices of the two goods…
A: A rational consumer always aims at maximizing his/her utility at the available income. The…
Q: The total profit from the sale of q sweatshirts is: P(q) = 5q – 0.005q2 – 450. a. Calculate the…
A: Total Profit earned by a firm is calculated by deducting total cost incurred by a firm from the…
Q: Question # 27: Marginal utility is the A) total satisfaction gained by consuming all units of a…
A: The difference in Total Utility caused by consuming one more unit of a good is known as Marginal…
Q: Jane insists on consuming 4 bowls of yogurt with 2 bananas. If the price of banana is $1 per unit…
A: The curve that demonstrates the relationship between income of a consumer and his demand for a…
Q: Number of Sodas per day Total Utility Marginal Utilit 1 20 2 35 3 47 12 4 10 5 7 Refer to the table,…
A: MU(marginal utility) is the extra utility which is obtained by the usage of an additional unit of…
Q: (b) Suppose there are two Bohemian roommates with identical preferences who derive utility from the…
A: Pareto efficiency, also known as Pareto optimality, is a concept from economics that represents a…
Step by step
Solved in 2 steps with 2 images
- Suppose a consumer has a monthly income of m = 100 which she spendson two commodities: french fries (x1) and beef jerky (x2). The price offrench fries is p1 = 2 and the price of beef jerky is p2 = 5.(a) Write down the consumer’s budget constraint (equation).(b) What is the maximal consumption of french fries (this is calledthe real income in french fries).(c) Find the maximal consumption of beef jerky (real income interms of beef jerky).The utility of a consumer derives from consuming the two goods X and Y can be assumed to be determined by the utility functionU(X,Y)= 4X03Y05. If good X costs 10 birr a unit and good Y costs 15 birr a unit and the consumer's income is 120 birr. What combination of X and Y that will maximize utility?January is choosing how much of pudding (measured on the horizontal axis) and how much of meat (measured on the vertical axis) to purchase with limited budget of $100. The price of pudding is $1.25 per pound and the price of meat is $3.75 per pound. Suppose the consumer wants to purchase the consumption bundle (20,40). This consumption bundle will be attainable O None of the other alternatives are correct O unattainable O efficient
- Urgent4.An individual consumes products X and Y and spends $30 per time period. The prices of the two goods are $3 per unit for X and $3 per unit for Y. The consumer in this case has a utility function expressed as: U(X.Y) = 0.5XY How much X should this individual consume, given that he is maximizing the utility? ( A) 4.17 ( B) 5 (C)6 D) 6.25Q6 If the utility function of consumption of a pizzas and y sodas is ry, the cost of pizzas is $5 each, the cost of sodas is $2 each, and the total amount available for snacks is $20. Find the amounts of pizzas and sodas for which consumption will be a maximum.
- 2 3) For each utility function, determine the marginal utility with respect to x, marginal utility with respect to y, and the MRS. (3pts each) a) U(x, y)-3x+2y b) U(x, y) 10x¹/5 y c) U(x, y)=x+ y²Assume that a consumer consumes two diff erent goods, and the utility function is u(x)= u (x1, x2) = x1x2, the production function of t wo goods is y=1/2+(x-5/8)1/3 at first, then t he function of goods 1 changes to y=1/2+(x -325/8)1/3. Assume that her income is M = 1 8. Calculate the compensating variation and equivalent variation. A B EV-15-6√3 CV=16√3-15 C CV=16√3-15 EV-15-6√3 D EV 18√3-18 CV-18-6√3 EV-18-6√3 CV-18√3-18Kate’s utility function includes coffee (c) and sugar (s). She only consumes coffee and sugar together, and she only consumes in the ratio of one unit (cup) of coffee with two units (spoons) of sugar. Her utility function is What is her marginal utility of sugar if she has 4 cups of coffee and 6 spoons of sugar? Remember that unit are infinitely divisible (you can have parts of units). (a) 0 (b) 1 (c) ½ (d) 2
- 3. Suppose Mary enjoys Pepsi and Coke according to the functionU(P;C) = 4C + 5P. What does her utility function say about her MRS of Coke for Pepsi? What do her indi§erence curves look like? What type of goods are Pepsi and Coke for Mary? If Pepsi and Coke each cost $1 and Mary has $20 to spend on these products, how many units of each product should she buy in order to maximize her utility? Show this utility maximiz- ing combination combination of Pepsi and Coke on the graph. how would her consumption and utility maximizing bundle of Coke and Pepsi change if the price of Coke decreases to 50 cents. 4. Vera is an impoverished graduate student who has only $100 a month to spend on food. She has read in a government publication that she can assure an adequate diet by eating only peanut butter and carrots in the Öxed ratio of 2 pounds of peanut butter to 1 pound of carrots, so she decides to limit her diet to that regime. a) If peanut butter costs $4 per pound and carrots cost $2 per…Fast pls solve this above question correctly in 6 min i will give u like for surea) You are given a utility function described as:U= U(K, L, M) = 10LogK + SLogL. + 2LogMWhere K, L and M are goods consumed. The individual has K100 to spend on the threeitems. Furthermore, you are informed that monthly salary is $500 and the prices of K, Land M are $2, $10 and $4 respectively. Calculate the consumer's optimal bundle.D.b) Provided a demand curve for Beans is as followsO = 4000 - 255PWhere Q is the quantity demanded and P is the price. Find the elasticity at K7, K10 and K15.