Question
Happy Family Restaurant sells Dumplings (D) and Rolls (R). Each Dumpling costs $2. Customers can buy up to 5 rolls at $1/each, but pay $3/each
Happy Family Restaurant sells Dumplings (D) and Rolls (R). Each Dumpling costs $2. Customers can buy up to 5 rolls at $1/each, but pay $3/each for more than 5 rolls.
A) Suppose that Giovanna buys 4 Dumplings and 3 Rolls. What is her MRS(D,R)? Explain what this means in words
B) Suppose that Jakina buys 6 Dumplings and 5 rolls. What is her MRS(D,R)? Explain what this means in words
C) True, False, or Uncertain: If customers could buy any number of Rolls at $1 each, Giovanna and Jakina would both increase their consumption of Rolls. Explain.
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Portfolio Management In Practice Volume 1
Authors: CFA Institute
1 Edition
1119743699, 978-1119743699
