Given that a utility function takes the form: u(x, x) = cln x + d ln...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Given that a utility function takes the form: u(x, x) = cln x + d ln x Find its marginal rate of substitution. [5 Marks] Given that a utility function takes the form: u(x, x) = cln x + d ln x Find its marginal rate of substitution. [5 Marks]
Expert Answer:
Answer rating: 100% (QA)
The detailed answer for the above question is provided below The marginal rate of substitution MRS r... View the full answer
Related Book For
Posted Date:
Students also viewed these economics questions
-
The utility that Ann receives by consuming food F and clothing C is given by U(F, C) = FC + F. The marginal utilities of food and clothing are MUF = C + 1 and MUC = F. Food costs $1 a unit, and...
-
Find the marginal rate of substitution (MRS) for the following problems. 1) u(x, x) = x xh 2) u(x, x) = 3) u(x, y) = xy = x + 3x 4) u(x1, x ) = x 1 + x2 where 8 = 0 and 8 > 1. This is commonly...
-
A student spends he "conspicuous consumption" bud , M, on ski lift passes (x) and shoes (y). The price of a ski lift pass is Px and the price of a pair of shoes is p. Her utility from the consumption...
-
The equity profolio of a company is thus 31/12/2001. Nature: Actions A, Quantity = 350, Unit cost = 36000, Purchase dates = 03/1999, 2000 = 37000, 2001= 34000. Nature: Actions B, Qauntity = 125, Unit...
-
Air is expanded in a nozzle from 700 kPa, 200C, to 150 kPa in a nozzle having an efficiency of 90%. The mass flow rate is 4 kg/s. Determine the exit area of the nozzle, the exit velocity, and...
-
Income statement and balance sheet excerpts of Shevlin and Liberty for the period ending December 31, 2018, follow. Compute cash provided (used) by operating activities for the period ending December...
-
Marketing units may be organized according to functions, products, regions, or types of customers. Describe how you would organize the marketing units for the following: a. A toothpaste with...
-
Claim: three-fourths of all adults believe that it is important to be involved in their communities. Based on a USA Today/Gallup poll of 1021 randomly selected adults, 89% believe that it is...
-
AAG company is reviewing the behavior of its various activities. AAG is considering various costs under process costing system. AAG uses a process-cost accounting system, began operations on January...
-
Consider the Everglade cash flow problem discussed in this chapter. Suppose that extra cash is kept in an interest-bearing savings account. Assume that any cash left at the end of a year earns 3...
-
Tara just turned age 60 and is single with no dependents. Shelost her full-time job last year and is currently working part-timeearning gross income of $1,000 per month. She has elected not tohave 2...
-
State the duties of a bank auditor in writing long form audit report in respect of the following aspects: Cash Books and records Investments Inter-branch accounts Advances Audit and inspection ...
-
In view, of the provisions of the Chartered Accountants Act, 1949 state and justify your views on the following cases (a) Whether you would accept offer of appointment as auditor of a firm in which...
-
State the special points to be considered while conducting audit on behalf of the following perons: A sleeping partner A retiring partner The legal representatives of a deceased partner
-
When should inventory be reported at a value other than cost?
-
Describe the statement of cash flow operating section created by Quick- Books Accountant.
-
You open a margin account and make a deposit of $50,000. Your Initial Margin Requirement is 50%, and your Maintenance Margin is 30%. You are currently looking at going "all in" on GME. The current...
-
What is beacon marketing? What are digital wallets?
-
Darrell has a monthly income of $60. He spends this money making telephone calls home (measured in minutes of calls) and on other goods. His mobile phone company offers him two plans: Plan A: pay no...
-
Sarah consumes apples and oranges (these are the only fruits she eats). She has decides that her monthly budget for fruit will be $50. Suppose that one apple costs $0.25, while one orange costs...
-
Suppose the market for wheat is competitive, with an upward-sloping supply curve, a downward-sloping demand curve, and an equilibrium price of $4.00 per bushel. Why would a higher price (e.g., $5.00...
-
Western Power is considering the replacement of an old billing system with new software that should save $5,000 per year in net cash operating costs. The old system has zero disposal value, but it...
-
Toyland Company was one of the original producers of Transformers. An especially complex part of Sect-a-con needs special tools that are not useful for other products. These tools were purchased on...
-
Explain the major features and advantages of a master budget.
Study smarter with the SolutionInn App