I am a Coinstar machine. I consume nickels (x) and dimes (y). I am always willing to trade two nickels for one dime and vice versa. (a) What is the my MRS of nickels for dimes? (b) Draw 3 indifference representative curves for someone with my preferences. Label axes, curves, and any intercepts. Identify the coordinates of at least one point on one of the curves. Indicate with an arrow that direction of increasing utility.
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.
I am a Coinstar machine. I consume nickels (x) and dimes (y). I am always willing to trade two nickels for one dime and vice versa. (a) What is the my MRS of nickels for dimes? (b) Draw 3 indifference representative
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