Final grade BRS응응응응ㅇ 70 60 40 20 10 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Hours of study per day Study hours 0 1 2 3 4 5 Grade FULLMAREN 6 7 8 9 10 11 12 13 14 15 or more 0 20 33 42 50 57 63 69 74 78 81 84 86 88 89 90 a. Show the optimum using indifference curves and a feasible set diagram. b. Show how this optimum might change if Alexei's indifference curves were (i) shallower, and (ii) steeper. c. How would you interpret these changes in gradient? What do they suggest about Alexei's preferences?

Final grade BRS응응응응ㅇ 70 60 40 20 10 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Hours of study per day Study hours 0 1 2 3 4 5 Grade FULLMAREN 6 7 8 9 10 11 12 13 14 15 or more 0 20 33 42 50 57 63 69 74 78 81 84 86 88 89 90 a. Show the optimum using indifference curves and a feasible set diagram. b. Show how this optimum might change if Alexei's indifference curves were (i) shallower, and (ii) steeper. c. How would you interpret these changes in gradient? What do they suggest about Alexei's preferences?

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter20: The Problem Of Adverse Selection Moral Hazard

Section: Chapter Questions

Problem 3MC

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