LTIPLE CHOICE. Choose the one alternative 22) The magnitude of the slope of an indiffe A) called the marginal rate of substitu B) equal to the ratio of the total utility C) always equal to the ratio of the pri D) all of the above E) A and C only

Q: Donald likes fishing (X1) and hanging out in his hammock (X2). His utility function for these two…

A: Utility is defined as the ability of a particular service or a good to satisfy a specific need.…

Q: Becky needs to decide how many cups of coffee and pieces of cake she will buy for a meeting with an…

A: Becky bought 1 cup of coffee and 4 pieces of cakes. Utility from 1 cup of coffee = 33 Utility from 4…

Q: How does a consumer maximizes their utility given that they experience a budget constraint? Explain…

A: A consumer always aims to maximize their utility or satisfaction from consumption of goods and…

Q: Michelle keeps fit by either doing yoga or Thai boxing . she has a budget of $72 per month. One yoga…

A: Given that the Michelle keeps fit by either doing yoga or Thai boxing.  She has a budget of $72 per…

Q: Assume that a consumer purchases a combination of products Y and Z and that the MUVPY= 30/2 and…

A: Total utility is the utility that is got by consuming the units of the commodity. It means the total…

Q: A young connoisseur has $600 to spend to build a small wine cellar. She enjoys two vintages in…

A: Utility refers to the satisfaction or benefit that a consumer derives from consuming a good or…

Q: Adrienne consumes three goods, x,y, and z. Her consumption preference is given by the utility…

A: U(x,y,z) = x17y27z47Px = 1Py = 10Pz = 10

Q: Consider a consumer that consumes 2 teaspoons of sugar with each cup of coffee. For each cup of…

A: A utility function is a mathematical representation that quantifies an individual's preferences for…

Q: Ambrose has u = 400x^(1/2)+ y, m = 1000, pY= 2 and pX= 200. He will maximize utility with x =…

A: Budget line: - it is the graphical representation of different combinations of two goods that a…

Q: Alexi has a budget of $21 to spend on toaster and breads. He does not directly gain any utility from…

A: Utility refers to the total amount of satisfaction that derived from the consumption of goods and…

Q: What is the trend of the total utility

A: Total utility refers to the overall satisfaction or usefulness that a consumer derives from…

Q: Multiple Choice 15. 10

A: Utility is a measure of the satisfaction derived from consuming some good or service. Marginal…

Q: You are maxiimizing utility when :A)(MU of X)/(P of X) < (MU of Y)/(P of Y). B)(MU of X)/(P of X)…

A: By maximizing utility, the consumer will choose the good that has the highest marginal utility at…

Q: Refer to the accompanying figure. The marginal utility of the 6th pizza is: Total Utility 105 100 90…

A: The utility derived from the consumption of an additional unit of a good or service is known as…

Q: T/F Explain If preference is strongly convex, the utility function will exhibit dimin- ishing…

A: The satisfaction or benefit acquired from consuming a product is referred to as utility;…

Q: one: a. (4,4) b. (2,8) c. (1.4) d. (3,2) e. (1,9) If the utility function of a consumer is given by…

A: The utility function for a typical household evaluates the contentment or wellbeing obtained from…

Q: Ann's utility function is U = q1q2/(q1 + q2). Solve for her optimal values of q1 and q2 as a…

A: In this case, we have to discuss the term Lagrange multiplier. Lagrange multiplier method is a…