Rachel has the utility function U(xA.×B) = xAxB where xa is the number of apples, and xBis the number of bananas. Her indifference curve passing through 12 apples and 4 bananas will also pass through the point where she consumes 6 apples and O 6 bananas. O 4 bananas. O 8 bananas. O 12 bananas.

Q: Suppose Darren pays $10 to eat at an All-you-can-eat dessert buffet. He was very hungry, an so he…

A: Here, the information about the marginal utility gained by Darren is given till the fifth unit of…

Q: Consider the problem of a consumer who must choose between two types of goods, good 1 (x₁) and good…

A: Utility function: u(x1, x2) = x1 + x2 Marginal Rate of substitution = dudx1dudx2= 12x11 Price of…

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A: Utility refers to the happiness or satisfaction that a person get from the consumption of goods or…

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A: Introduction An indifference curve (IC) is a mathematical representation of a collection of products…

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A: Answer to the question is as under:

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A: Opportunity cost is the cost of the next best alternate foregone when the current option is chosen.

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A: utility function is an important concept that measures preferences over a set of goods and services.…

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

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A: Since you have posted multiple questions, we will provide the solution to only the first question as…

Q: As more of a good is consumed in a given period, its... O total utility remains constant O total…

A: please find the answer below

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Q: Refer to the information provided in Figure below to answer the question that follow. Total utility…

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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.