Business, 04.03.2020 02:26 dondre54

Assume that Jim is a rational consumer who consumes only two goods, apples (A) and nuts (N). Assume that his marginal rate of substitution of apples for nuts is given by the following formula:
MRS = MUN/MUA = A/N
That is, Jim’s MRS is equal to the ratio of the number of apples consumed to the number of nuts consumed.
a. Assume that Jim’s income is $100, the price of nuts is $5, and the price of apples is $10.What quantities of apples and nuts will he consume?
b. Find two additional points on his demand curve for nuts (PN = $10 and PN = $2).
c. Sketch one of the equilibrium

Answers: 1

Show answers

Another question on Business

Business, 21.06.2019 13:30

Suppose the money market is in the liquidity trap and the fed increases the supply of money. individuals would rather hold than because they expect that bond prices can go no

Answers: 2

Answer

Business, 22.06.2019 05:20

Carmen co. can further process product j to produce product d. product j is currently selling for $20 per pound and costs $15.75 per pound to produce. product d would sell for $38 per pound and would require an additional cost of $8.55 per pound to produce. what is the differential revenue of producing product d?

Answers: 2

Answer

Business, 22.06.2019 07:30

When the national economy goes from bad to better, market research shows changes in the sales at various types of restaurants. projected 2011 sales at quick-service restaurants are $164.8 billion, which was 3% better than in 2010. projected 2011 sales at full-service restaurants are $184.2 billion, which was 1.2% better than in 2010. how will the dollar growth in quick-service restaurants sales compared to the dollar growth for full-service places?

Answers: 2

Answer

Business, 22.06.2019 15:30

The school cafeteria can make pizza for approximately $0.30 a slice. the cost of kitchen use and cafeteria staff runs about $200 per day. the pizza den nearby will deliver whole pizzas for $9.00 each. the cafeteria staff cuts the pizza into eight slices and serves them in the usual cafeteria line. with no cooking duties, the staff can be reduced by half, for a fixed cost of $75 per day. should the school cafeteria make or buy its pizzas?

Answers: 3

Answer

You know the right answer?

Assume that Jim is a rational consumer who consumes only two goods, apples (A) and nuts (N). Assume...

Questions