Question: Natasha's utility function is U(C,F) = C1/3x F, where C stands for concert tickets and F stands for film tickets. For this utility function, marginal

Natasha's utility function is U(C,F) = C1/3x F, where C stands for concert tickets and F stands for film tickets. For this utility function, marginal utilities with respect to C and F are
MUC = F / 3C2/3
MUF = C1/3.
Her income is $300 per month, a concert ticket costs $15, and a film ticket costs $10. What is the formula for Natasha's MRSCF? Does it have the declining MRS property? How many film tickets will she purchase, and how many concert tickets?

Step by Step Solution

3.28 Rating (160 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Natashas formula is MRS CF F3C It does have the declining MRS property N... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

847-B-E-D-S (2668).docx

120 KBs Word File

Students Have Also Explored These Related Economics Questions!