Tim consumes pizza (P) and soda (S). Consider the following 4 possible market bundles: A: P=0.5 S=3 B: P=1 S=2 C: P=1.5 S=1 D: P=2 S=3 If Tim's indifference curves are convex and an indifference curve goes through A and C, then Tim B to A and C. a) prefers b) doesn't prefer c) is indifferent between Comparing B and D, it must be the case that Tim . a) prefers b to d b) can't afford d c) prefers d to b d) is indifferent between b and d Tim might purchase B instead of D because he . a) prefers b to d b) can't afford d c) prefers d to b d) is indifferent between b and d
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.
Tim consumes pizza (P) and soda (S). Consider the following 4 possible market bundles:
A: P=0.5 S=3
B: P=1 S=2
C: P=1.5 S=1
D: P=2 S=3
If Tim's indifference curves are convex and an indifference curve goes through A and C, then Tim B to A and C.
a) prefers
b) doesn't prefer
c) is indifferent between
Comparing B and D, it must be the case that Tim .
a) prefers b to d
b) can't afford d
c) prefers d to b
d) is indifferent between b and d
Tim might purchase B instead of D because he .
a) prefers b to d
b) can't afford d
c) prefers d to b
d) is indifferent between b and d
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