Five consumers have the following marginal utility of apples and pears: The price of an apple is

Question:

Five consumers have the following marginal utility of apples and pears:

The price of an apple is $2, and the price of a pear is $1. Which, if any, of these consumers are optimizing over their choice of fruit? For those who are not, how should they change theirspending?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Principles of economics

ISBN: 978-0538453042

6th Edition

Authors: N. Gregory Mankiw

See More Books

Question Posted: Dec 14, 2012 05:53 AM

See More Questions

Which if any of these statements are true? Stock prices appear to behave as though successive values. a. are random numbers. b. follow regular cycles. c. differ by a random number.
For those who do not attend weekly religious services compared with those who do: a. The increased risk of dying from all causes for men under age 70 is 0.27. b. The relative risk of dying from...
Aramis, Porthos, and Athos have the following marginal value schedules for swords: Aramis, Porthos, and Athos are the only buyers of swords in the community, and swords are produced at a constant...
Generics, Inc. is a U. S. GAAP reporter that manufactures and sells generic drugs and has a December 31 year-end. On March 1, 2014, it began selling a drug, Anocyn, which is a generic of Dicital....
Example TLC asks if the vector can be written as a linear combination of the four vectors Can it? Can any vector in C6 be written as a linear combination of the four vectors u1, u2, u3, u4? 13 15...
The following hypotheses have been proposed to explain the reminiscence bump: (a) self-image, (b) cognitive, and (c) cultural life script. lo1
You are a consultant advising Valley Commercial Bank about its incentive systems for lower-level managers Maker and employees. Your interviews with branch and department managers inform you that they...
Memorial Hospital is a 265-bed regional health care facility located in the mountains of western North Carolina. The mission of the hospital is to provide quality health care to the people of Ashe...
idk Raymond Music Company uses a perpetual inventary system. The aduated tral balanoe of Rick Raymond Musio Campany at June 30, 2018, talaw: (Cick the icon lo view the adjusted trial belance Data...
Which one of the following is an assumption that underlies cost-volume-profit analysis? 1. For costs classified as variable, the costs per unit of output must change constantly. 2. For costs...
The welfare system provides income to some needy families. Typically, the maximum payment goes to families that earn no income; then, as families begin to earn income, the welfare payment declines...
A person who buys a life insurance policy pays a certain amount per year and receives for his family a much larger payment in the event of his death. Would you expect buyers of life insurance to have...
In the midst of labormanagement negotiations, the president of a company argues that the companys blue-collar workers, who are paid an average of $30,000 per year, are well paid because the mean...
The four forces, 400, 500, 600 and 700N are acting along the edges of a 0.8m cube as shown. Represent the resultant of these forces by 1) A force Fr through the point A 2) A couple moment Mr (give...
Problem 1. What is the degree of freedom of the following mechanism? Sliding joint Sliding joint
PILAR Manufacturing Co. has three producing departments (P, I, & L), and two service departments (A&R). The total estimated departmental expenses for 2021 before distribution of service department...
1. A volleyball player serves the ball at point A with an initial velocity vo at an angle of 20 to the horizontal. (a) Determine the minimum velocity of the serve such that the ball will just clear...
9.50. Dipping low ** A top with I = 3/3 floats in outer space and initially spins around its x3 axis with angular speed w3. You apply a strike at the bottom point, directed into the page, as shown in...
What Is social accounting and why do companies engage in it?
1. True or False. Pitfalls to consider in a statistical test include nonrandom samples, small sample size, and lack of causal links. 2. Because 25 percent of the students in my morning statistics...
Sketch the curves using the equations given in Problems 28-51. $\frac{x^{2}}{25}+\frac{y^{2}}{36}=1$
Suppose that people expect inflation to equal 3 percent, but in fact, prices rise by 5 percent. Describe how this unexpectedly high inflation rate would help or hurt the following: a. The government...
How would the following transactions affect U.S. exports, imports, and net exports? a. An American art professor spends the summer touring museums in Europe. b. Students in Paris flock to see the...
Would each of the following transactions be included in net exports or net capital outflow? Be sure to say whether it would represent an increase or a decrease in that variable. a. An American buys a...
Calculate the current ratio and the quick ratio for the following partial financial statement for Tootsie Roll Note: Round your answers to the nearest hundredth
Required information Skip to question [ The following information applies to the questions displayed below. ] Golden Corporation's current year income statement, comparative balance sheets, and...
Glencove Company makes one model of radar gun used by law enforcement officers. All direct materials are added at the beginning of the manufacturing process. Information for the month of September...

Five consumers have the following marginal utility of apples and pears: The price of an apple is

Question:

Marginal Utility Marginal Utility of Apples of Pears 6 6 12 Jerry George Elaine Kramer Newman 6 12

Step by Step Answer:

Utility is maximized when the marginal utility per ...View the full answer

Principles of economics

Students also viewed these Economics questions