Paul consumes only books and DVDS. At his current consumption bundle, his marginal utility from DVDS is 13 and from books is 2. Each DVD costs $12, and each book costs $1. Is he maximizing his utility? Explain. Let MUB be the marginal utility of books, MU, be the marginal utility from DVDS, Pg be the price of books, Pp be the price of DVDS, and MRS be the marginal rate substitution. Paul is MUB O A. not maximizing his utility because MRS > MUD MUB MUD O B. maximizing his utility because P8 PD MUB MUD O C. maximizing his utility because PB PD MUB O D. maximizing his utility because MRS = MUD MUB MUD O E. not maximizing his utility because Рв PD

Paul consumes only books and DVDS. At his current consumption bundle, his marginal utility from DVDS is 13 and from books is 2. Each DVD costs $12, and each book costs $1. Is he maximizing his utility? Explain. Let MUB be the marginal utility of books, MU, be the marginal utility from DVDS, Pg be the price of books, Pp be the price of DVDS, and MRS be the marginal rate substitution. Paul is MUB O A. not maximizing his utility because MRS > MUD MUB MUD O B. maximizing his utility because P8 PD MUB MUD O C. maximizing his utility because PB PD MUB O D. maximizing his utility because MRS = MUD MUB MUD O E. not maximizing his utility because Рв PD

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

do fast don't use chatgpt answer,
21
I need help with HW.
How do sales taxes typically apply in a business environment?
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.Answer completely.You will get up vote for sure.
Typed plz and asap please provide a quality solution and take care of plagiarism also
There is a bar on Off‐Main Street called the Rock‐n‐Roll Bar. All the people that go to that bar like to listen to rock‐n‐roll music, and they love live bands. If the bar owner brings bands in to play music on a Saturday night, she will make a lot of money. However there are tenants in this building who get annoyed by the loud music. The benefits/costs to the owner/tenants of having zero, one, two or three bands on a Saturday night are listed in the attached table. If the tenants have the right to be free of loud music enforced through a property rule, how many bands will play in Rock‐n‐Roll Bar on a Saturday night? A. Zero B. One C. Two D. Three E. It depends on transaction costs
why choose A?
Pls help ASAP
B9
What are the Revenue projects?
There is a bar on Off‐Main Street called the Rock‐n‐Roll Bar. All the people that go to that bar like to listen to rock‐n‐roll music, and they love live bands. If the bar owner brings bands in to play music on a Saturday night, she will make a lot of money. However there are tenants in this building who get annoyed by the loud music. The benefits/costs to the owner/tenants of having zero, one, two or three bands on a Saturday night are listed below. Assume the bar owner has the right to hire as many bands as she likes. Iftransaction costs were $90, split between the bar owner and the tenants, how manybands would play? What would social welfare be? A. Three bands would play and social welfare would be ‐100.B. Two bands would play and social welfare would be 75.C. Two bands would play and social welfare would be ‐15.D. No bands would play and social welfare would be 0.E. Three bands would play and social welfare would be ‐190