Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

18. Researchers have investigated the preferences over dinner and they have found that they take the following form: U = - 68 Chicken + 21

18.

Researchers have investigated the preferences over dinner and they have found that they take the following form:

U = - 68 Chicken + 21 Steak + 4 Fish - 43 Costs

Costs= cost in dollars of the dinner
Chicken= amount of chicken in pounds
Steak= amount of steak in pounds
Fish= amount of fish in pounds

Given this information, how many pounds of fish is the consumer willing to give up to obtain one more pound of steak during dinner? (hint: use MRS(steak, fish) but enter your answer as a positive number)

19. If the ulitity function is: U=86x1 + 14x2

If x1=44, how much of x2 does the consumer has to consume to obtain a utility level of 6,159?

Step by Step Solution

3.40 Rating (163 Votes )

There are 3 Steps involved in it

Step: 1

The detailed answer for the above question is provided below 18 The M... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Income Tax Fundamentals 2013

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill

31st Edition

1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516

More Books

Students also viewed these Economics questions

Question

Explain the action potential.

Answered: 1 week ago

Question

Recall the role of various endocrine glands.

Answered: 1 week ago

Question

Identify the parts of a neuron and describe the function of each.

Answered: 1 week ago