FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Charlotte spends her income of $2400 on clothing (good x), and the composite good (good y ). The utility Charlotte receives from consuming a basket

Charlotte spends her income of $2400 on clothing (good x), and the composite good (good y ). The utility Charlotte receives from consuming a basket of clothing and the composite good is, U(x, y ) = 2 x + y 300. The corresponding marginal utilities are, MUx = 1 x and MUy = 1 300.

QUESTION 1 ? Is the 'principal of diminishing marginal utility' satisfied for both clothing and the composite good? Briefly explain.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

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

Legal Environment

Legal Environment

Authors: Jeffrey F Beatty, Susan S Samuelson

3rd Edition

0324537115, 9780324537116

More Books

Students also viewed these Economics questions

Question

★★★★★
In Exercises 1-4, use the change-of-base formula to rewrite the logarithm as a ratio of logarithms. Then use a graphing utility to graph the ratio. 1. f (x) = log2 x 2. f (x) = log1/2 x 3. f (x) =...

Answered: 1 week ago

Question

★★★★★
What are the five interrelated components of internal control? Briefly discuss them. The five interrelated components of internal control are: 1. Control environment, 2. Risk assessment, 3. Control...

Answered: 1 week ago

Question

★★★★★
5. Obey all school rules. As with the elementary class rules, this covers many behaviors and situations, so you do not have to repeat every school rule for your class. This reminds students that the...

Answered: 1 week ago

Question

★★★★★
The Fair View Golf & Country Club details the following accounts in its financial statements. Instructions(a) Classify each of the above accounts as an asset (A), liability (L), stockholders?? equity...

Answered: 1 week ago

Question

★★★★★
You are offered a $3 loan if you repay $4 in one weeks time. What is the annual rate (APR) and what is the Effective Annual Interest rate (EAR)?

Answered: 1 week ago

Question

★★★★★
Calculate the expected present value and variance of the present value of an endowment assurance of 1 payable at the end of the year of death for a life aged 40 exact, with a term of 15 years. ...

Answered: 1 week ago

Question

★★★★★
Corporate cultures vary considerably, both within and across national borders. Why should global managers care about such variations, so long as they know the specific individuals within a company...

Answered: 1 week ago

Question

★★★★★
Question #1 (2 points) For the following file type extensions provide a brief description of its purpose and what it is used for. Example: .bmp short for: bitmap used for: graphics, Microsoft...

Answered: 1 week ago

Question

★★★★★
A high-paying job that you rally want. Include sufficient detail to demonstrate you have a solid understanding of the concepts and you can explain your thinking very well. What factors should you...

Answered: 1 week ago

Question

★★★★★
7) The matrix below contains data about an unbalanced transportation problem. To solve this problem, you would have to create a Dummy _____. Unit Cost From/To Destination #1 Destination #2...

Answered: 1 week ago

Question

★★★★★
1 . Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be traced to five separate activity pools....

Answered: 1 week ago

Question

★★★★★
Enterprise X is a two-stage enterprise, Direct First Substance and Material Expense are put in both the first and second stages. Transferred from the first phase to the second phase units are worth...

Answered: 1 week ago

Question

★★★★★
13. Think about a relationship conflict you have had in your workplace or home situation. Try to interpret the conflict from the following logical levels: a. Purpose b. Role c. Values d. Competence...

Answered: 1 week ago

Question

★★★★★
7. Imagine a communication situation in a work context or in the home situation that has made a big impression on you, positively or negatively. a. Examine now i. your own intentions ii. what you...

Answered: 1 week ago

Question

★★★★★
Personal role: This consists of service to family and friends.

Answered: 1 week ago

Previous Question Next Question