Five consumers have the following marginal utility of apples and pears: The price of an apple is

Question:

Five consumers have the following marginal utility of apples and pears:

The price of an apple is $2, and the price of a pear is $1. Which, if any, of these consumers are optimizing over their choice of fruit? For those who are not, how should they change theirspending?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Principles of economics

ISBN: 978-0538453042

6th Edition

Authors: N. Gregory Mankiw

See More Books

Question Posted: Dec 14, 2012 05:53 AM

See More Questions

Which if any of these statements are true? Stock prices appear to behave as though successive values. a. are random numbers. b. follow regular cycles. c. differ by a random number.
For those who do not attend weekly religious services compared with those who do: a. The increased risk of dying from all causes for men under age 70 is 0.27. b. The relative risk of dying from...
Aramis, Porthos, and Athos have the following marginal value schedules for swords: Aramis, Porthos, and Athos are the only buyers of swords in the community, and swords are produced at a constant...
Generics, Inc. is a U. S. GAAP reporter that manufactures and sells generic drugs and has a December 31 year-end. On March 1, 2014, it began selling a drug, Anocyn, which is a generic of Dicital....
Example TLC asks if the vector can be written as a linear combination of the four vectors Can it? Can any vector in C6 be written as a linear combination of the four vectors u1, u2, u3, u4? 13 15...
The FASB ASC provides guidance on accounting for best-efforts basis, research and development cost-sharing arrangements by federal government contractors. Find, cite, and copy that guidance.
Consider the model \[ y=\theta_{1}-\theta_{2} e^{-\theta_{3} x}+\varepsilon \] This is called the Mitcherlich equation, and it is often used in chemical engineering. For example, $y$ may be yield...
At the end of June, Morton Company had a balance of $49,900 in the vacation benefits payable account. During July, employees earned an additional $3,110 in vacation benefits, but some employees used...
On May 1, 2022, Cullumber Company purchased the copyright to Bramble Corp. for $134400. It is estimated that the copyright will have a useful life of 4 years. What would be the amount of amortization...
Your client, Heron Corporation, has a deficit in accumulated E & P of $300,000. Starting this year, it expects to generate annual E & P of$150,000 for the next four years and would like to distribute...
The welfare system provides income to some needy families. Typically, the maximum payment goes to families that earn no income; then, as families begin to earn income, the welfare payment declines...
A person who buys a life insurance policy pays a certain amount per year and receives for his family a much larger payment in the event of his death. Would you expect buyers of life insurance to have...
Determine the horizontal displacement of joint A. AE is constant. Use the principle of virtual work. A 7 kN. 2 m 60 C 2 m Probs. F8-3/4 D B
Given the code segment below, indicate the output for the following initial values of $x$ and $y$ : A. What is the output if the integer variable $x$ contains 10 and $y$ contains -15 ? B....
Determine the output from the following code segment: int sum; int count; sum 0; count = 1; while (sum < 10) { } sum sum + count; count++; System.out.println ("sum = System.out.println("count...
Discuss the relationship between objective and strategy in pricing.
Determine the output from the following code segment: int i, j; for (i=1; i
Mr Michael Quint has recently taken over the family owned, independent producer of quality wines in Germanys picturesque Mosel River Valley. With the enthusiastic support of his wife and the...
What is the law of contraposition?
1. What is the semi-annually compounded interest rate if $200 accumulates to $318.77 in eight years? Answer in percentage with two decimal places. 2. What is the quarterly compounded interest rate if...
Sketch the curves using the equations given in Problems 28-51. $\frac{x^{2}}{25}+\frac{y^{2}}{36}=1$
Suppose that people expect inflation to equal 3 percent, but in fact, prices rise by 5 percent. Describe how this unexpectedly high inflation rate would help or hurt the following: a. The government...
How would the following transactions affect U.S. exports, imports, and net exports? a. An American art professor spends the summer touring museums in Europe. b. Students in Paris flock to see the...
Would each of the following transactions be included in net exports or net capital outflow? Be sure to say whether it would represent an increase or a decrease in that variable. a. An American buys a...
Jun. 3 Purchased inventory on account with credit terms of 4/10, n/EOM, $2,100. 9 Returned 30% of the inventory purchased on June 3. It was defective. 12 Sold goods for cash, $940 (cost, $564). 15...
Jorge and Anita, married taxpayers, earn $151,600 in taxable income and $40,400 in interest from an investment in City of Heflin bonds. Using the U.S. tax rate schedule for married filing jointly,...
How does the design of change interventions account for contextual factors such as organizational culture, leadership style, and readiness for change, as they tailor intervention strategies,...

Five consumers have the following marginal utility of apples and pears: The price of an apple is

Question:

Marginal Utility Marginal Utility of Apples of Pears 6 6 12 Jerry George Elaine Kramer Newman 6 12

Step by Step Answer:

Utility is maximized when the marginal utility per ...View the full answer

Principles of economics

Students also viewed these Economics questions