Davids utility function is U = B + 2Z, so MU B = 1 and MU Z
Question:
David’s utility function is U = B + 2Z, so MUB = 1 and MUZ = 2. Describe the location of his optimal bundle (if possible) in terms of the relative prices of B and Z.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 77% (9 reviews)
If we plot B on the vertical axis and Z on the horizont...View the full answer
Answered By
PALASH JHANWAR
I am a Chartered Accountant with AIR 45 in CA - IPCC. I am a Merit Holder ( B.Com ). The following is my educational details.
PLEASE ACCESS MY RESUME FROM THE FOLLOWING LINK: https://drive.google.com/file/d/1hYR1uch-ff6MRC_cDB07K6VqY9kQ3SFL/view?usp=sharing
3.80+
3+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
Natasha's utility function is U(C, F) = (3 + F), where C stands for concert tickets and F stands for film tickets. Her income is $300 per month and concert tickets cost $5 each. What is the formula...
-
A parent has two children named A and B and she loves both of them equally. She has a total of $1,000 to give to them. (a) The parents utility function is U(a, b) = a + b, where a is the amount of...
-
In the previous problem, suppose that A is a much more efficient shopper than B so that A is able to get twice as much consumption goods as B can for every dollar that he spends. Let a be the amount...
-
Garcia Corporation has paid 60 consecutive quarterly cash dividends (15 years). The last 6 months, however, have been a cash drain on the company, as profit margins have been greatly narrowed by...
-
When astronauts return from prolonged space flights, they often suffer from bone loss, resulting in brittle bones that may take weeks for their bodies to rebuild. One solution may be to expose...
-
Consider a classroom for 55 students and one instructor, each generating heat at a rate of 100 W. Lighting is provided by 18 fluorescent lightbulbs, 40 W each, and the ballasts consume an additional...
-
What are the characteristics of data required to generate knowledge about corporate eco-efficiency?
-
Mark Welsch deposits $7,200 in an account that earns interest at an annual rate of 8%, compounded quarterly. The $7,200 plus earned interest must remain in the account 10 years before it can be...
-
On June 30, Ayayai Corp. discontinued its operations in Mexico. During the year, the operating income was $150,000 before taxes. On September 1, Ayayai disposed of the Mexico facility at a pretax...
-
Registration at Southern University has always been a time of emotion, commotion, and lines. Students must move among four stations to complete the trying semiannual process. Last semesters...
-
Julia consumes cans of anchovies, A, and boxes of biscuits, B. Each of her indifference curves reflects strictly diminishing marginal rates of substitution. Where A = 2 and B = 2, her marginal rate...
-
Jos Marias utility function is U(B, Z) = AB Z . What is his marginal utility of B? What is his marginal utility of Z? What is his marginal rate of substitution between B and Z?
-
What is the maturity date of a bond?
-
The demand for money and bonds You have learnt in this chapter that the interest rate affects both the prices of bonds and the demand for money. Explain each of these relationships. Do these...
-
How are methods specified? Give an example of a method specification for a compute pay method associated with an hourly employee class.
-
In The Mythical Man-Month, Frederick Brooks argues that adding more programmers to a late project makes it later. Why?
-
When offshoring development, how could differences in Halls context dimension of culture affect the contribution of a team member to the successful development of an information system? What about...
-
Compare and contrast server-based architectures, client-based architectures, and clientserver-based architectures.
-
Doherty wrote a software program called Viper for Szlendak. Subsequently, Katris and Hamburg joined Szlendak and Doherty in forming an LLC, Viper Execution Systems, to exploit the capabilities of the...
-
Tell whether the angles or sides are corresponding angles, corresponding sides, or neither. AC and JK
-
Colin believes that the number of job offers he will get depends on the number of courses in which his grade is B+ or better. He concludes from observation that the following figures are typical: Put...
-
Discuss the resource limitations that affect a. The poorest person on earth b. Bill Gates, the richest person on earth c. A farmer in Kansas d. The government of Indonesia
-
Graphically show the production possibilities frontier for the nation of Stromboli, using the data given in the following table. Does the principle of increasing cost hold in Stromboli? Strombolis...
-
-0 d +20 ++ B ++ C 22722 - d D 2d + + 2d The figure above shows three very thin parallel planes of charge with equal separation 4 cm between them. The charge density of the middle plane is +14 nC/m...
-
The financial statements for Caterpillar showed the following items for the years ending December 31, 2017, 2016, and 2015. All amounts are in millions of dollars. Income statement items: Cost of...
-
What strategies can organizations employ to ensure equity in hiring and promotion processes, and how can these strategies be balanced with the need for merit-based decision-making?
Study smarter with the SolutionInn App