1. Rick and Morty are going on a crazy adventure to the Giants Dimension, where the...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
1. Rick and Morty are going on a crazy adventure to the Giants Dimension, where the currency is schmeckles. Rick has won a budget of 72 schmeckles in a card game, which he now needs to spend purchasing Bloogies, which cost 4 schmeckles each, and Flurlows, which cost 6 schmeckles. a. Suppose Rick buys 9 Bloogies and 6 Flurlows. At this point, his marginal utility for Bloogies is 12 and his marginal utility for Flurlows is 12. Is Rick maximizing his utility with this combination? How can you tell? If he is not maximizing his utility, what would you suggest he do? b. Assuming Bloogies and Flurlows are both normal goods, how would a decrease in the price of Bloogies to 2 schmeckles impact his consumption of both goods? Is one good ambiguous? c. (Tricky) Working with the price Bloogies from part b, Rick now consumes 18 Bloogies and 4 Flurlows. At this bundle, his marginal utility for Bloogies is 8, and his marginal utility for Flurlows is 24. Is Rick maximizing his utility here? Why or why not? 1. Rick and Morty are going on a crazy adventure to the Giants Dimension, where the currency is schmeckles. Rick has won a budget of 72 schmeckles in a card game, which he now needs to spend purchasing Bloogies, which cost 4 schmeckles each, and Flurlows, which cost 6 schmeckles. a. Suppose Rick buys 9 Bloogies and 6 Flurlows. At this point, his marginal utility for Bloogies is 12 and his marginal utility for Flurlows is 12. Is Rick maximizing his utility with this combination? How can you tell? If he is not maximizing his utility, what would you suggest he do? b. Assuming Bloogies and Flurlows are both normal goods, how would a decrease in the price of Bloogies to 2 schmeckles impact his consumption of both goods? Is one good ambiguous? c. (Tricky) Working with the price Bloogies from part b, Rick now consumes 18 Bloogies and 4 Flurlows. At this bundle, his marginal utility for Bloogies is 8, and his marginal utility for Flurlows is 24. Is Rick maximizing his utility here? Why or why not?
Expert Answer:
Answer rating: 100% (QA)
a To determine if Rick is maximizing his utility with the given combination of 9 Bloogies and 6 Flur... View the full answer
Related Book For
Auditing Cases An Interactive Learning Approach
ISBN: 978-0132423502
4th Edition
Authors: Steven M Glover, Douglas F Prawitt
Posted Date:
Students also viewed these economics questions
-
1. Sketch indifference curves for each of the following consumers for a days worth of coffee and food, and describe why the indifference curves take the shape they do. Draw the indifference curves as...
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
On January 15, Tundra Co. sold merchandise to customers for cash of $42,000 (cost $28,500). Merchandise costing $10,500 was sold to customers for $15,800 on January 17; terms 2/10, n/30. Sales...
-
La Coupe Corporation produces and supplies automotive manufacturers with the mechanisms used to adjust the positions of front seating units. Several competitors have recently entered the market, and...
-
If the null hypothesis is rejected, then ____ is accepted.
-
Texas Inpatient Consultants, LLLP, is a partnership that employs physicians to deliver medical care to hospitalized patients of other physicians. Texas Inpatient recruited Julius Tabe, M.D., to work...
-
The Bennet Company purchases one of its essential raw materials from three suppliers. Rennets current policy is so distribute purchases equally among the three. The owners son, Benjamin Rennet, just...
-
Transform following Relational model into ER Mode id Author name dob AuthorContact id contact Manager writes authorid bookid Book bookid title edition libid memberld location opening Time...
-
Bob and Jimmy are the elite 2-man Jamaican bobsled team. At the beginning of the race, Bob pushes the sled from behind with a force of 500 N angled 27 below horizontal. Jimmy pushes with a purely...
-
You are saving to buy a $178,000 house. There are two competing banks in your area, both offering certificates of deposit yielding 6.3 percent. How long will it take your initial $95,000 investment...
-
Of the risks presented in the Harvard business review privacy case Alexa, please describe what you think is the biggest risk for consumers who use Alexa. What is the biggest risk for Amazon? Are they...
-
1. A project has an initial cost of $37,050, expected net cash inflows of $12,000 per year for 7 years, and a cost of capital of 13%. What is the project's PI? Do not round your intermediate...
-
Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below.] The following adjusted trial balance at December 31 of Wilson...
-
Sister Pools sells outdoor swimming pools and currently has an aftertax cost of capital of 11.6 percent. Al's Construction builds and sells water features and fountains and has an aftertax cost of...
-
It is possible to verify your codes by calling the function in command window using the vector A = [ 15, 1, 8, 6, 10, 5] It is possible to verify your codes by calling the function in command window...
-
Shreemaya Hotel in !adore was facing a problem of low demand for its rooms due to off season. The Managing Director (MD) of the hotel, Mrs. Sakina was very worried. She called upon the Marketing...
-
Burlingham Bees, an independent, minor league baseball team, competes in the Northwest Coast League. The team finished in second place in 2008 with an 87-57 record. The Bees 2008 cumulative season...
-
Confirmations of accounts receivable play an important role in the accumulation of sufficient, appropriate audit evidence. One of the principal strengths of confirmations is that they provide...
-
Flash Technologies, Inc. has recently engaged your firm to perform the annual audit for the year ending December 31, 2008. Flash has determined that its current auditors, Adams & Adams LLP, cannot...
-
Salen Company finances some of its current operations by assigning accounts receivable to a finance company. On July 1, 2015, it assigned, under guarantee, specific accounts amounting to 150,000,000....
-
Bill Jovi is reviewing the cash accounting for Nottleman, Inc., a local mailing service. Jovis review will focus on the petty cash account and the bank reconciliation for the month ended May 31,...
-
On October 1, 2015, Arden Farm Equipment Company sold a pecan-harvesting machine to Valco Brothers Farm, Inc. In lieu of a cash payment Valco Brothers Farm gave Arden a 2-year, $120,000, 8% note (a...
Study smarter with the SolutionInn App