If good 1 is a neutral, what is its marginal rate of substitution for good 2?

Question:

If good 1 is a “neutral,” what is its marginal rate of substitution for good 2?

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

Step by Step Answer:

Related Book For answer-question

Intermediate Microeconomics

ISBN: 978-0393934243

8th edition

Authors: Hal R. Varian

See More Books

Question Posted: Feb 20, 2019 02:32 PM

See More Questions

Fill in the blanks with either good X or good Y, where good X is measured on the x-axis and good Y is measured on the y-axis (vertical axis). a. If the price of ____ is $8, and the price of ____ is...
Consider a politician who has to determine how much effort he will exert in his re-election campaign. A: We can model such a politician as a producer of good feelings among voters. (a) Begin with a...
1. When a gasoline tax is offset by an income-tax cut that makes a consumer s original choice just affordable, the price ratio _____ (increases/ decreases). In this case, there is no _____ effect,...
The dehydration butanol of alumina is carried out over a silica-alumina catalyst at 680K. CH3CH2CH2CH20H------->cat CH3CH=CHCH3 + H2O The rate law is -r Bu = KPBU/(1+KBuPBul with k= 0.054...
As indicated in the case at the beginning of this chapter, Xerox was manipulating income between the years 1997 through 1999. Below are revenue, gross profit, net income, and operating cash flow data...
Given the legalization of cannabis in certain parts of North America, there has been growth in this business sector. CPAB inspected a total of 42 cannabis audit files over 20192020 and found...
Jose Casillas and Robert Houle purchased an older home that had been divided into apartment units. Their initial plan was to renovate and resell the home, but they decided instead to keep it and...
Several years after reengineering its production process, Trudell Corp. hired a new controller, Georgia Taylor. She developed an ABC system very similar to the one used by Trudells chief rival. Part...
Syer Company reports net operating income (loss) for financial reporting and tax purposes in each year as follows ($ in millions): 2016 2017 2018 $ 340) $ 140 $ 0 2019 $0 2020 $ (680) Syer's 2020 NOL...
Most modern computing in organizations is based on clientserver models. Explain why this tends to be the case. Give an example of clientserver computing that you are familiar with and explain the...
What is your marginal rate of substitution of $1 bills for $5 bills?
Graph the quadratic function (x) = -2x 2 + 6x - 3. Give the intercepts, vertex, axis, domain, range, and the largest open intervals of the domain over which the function is increasing or decreasing.
The mean weight of beauty pageant winners is 118 pounds. A study of 15 randomly selected beauty pageants resulted in a mean winner weight of 120 pounds. a. Express the original claim in symbolic...
A speculator believes that the share price at the BMSB will be al a downward direction in the near future. You asked your broker to short 30 KLCI futures contracts at a price of 855. Based on the...
The random variable x has a normal distribution with standard deviation 3.5 but unknown mean . The hypothesis H 0 : = 3 is to be tested against H 1 : = 4 by taking a random sample of size 70 from the...
How do Max Weber and Karl Marx differ in their interpretations of the role of religion in driving social change, particularly regarding the influence of religious beliefs and institutions on economic...
Greater Boston Homes (GBH) is a moderately sized company that does home construction in and around Boston. Although the organization was not terribly creative when coming up with a name, it has been...
General Telecommunications (GT) is a telecommunications company that wants to position itself as a leading provider of a wide range of telecommunication services. GT is currently providing TV, high...
For general functions, solve for the monopsony's first-order condition if it is also a monopoly in the product market?
In Problem 8.43, determine the smallest value of for which the rod will not fall out of the pipe. IA -3 in.-
Freddy Frolic consumes only asparagus and tomatoes, which are highly seasonal crops in Freddys part of the world. He sells umbrellas for a living, which provides a fluctuating income depending on the...
Pierre consumes bread and wine. For Pierre, the price of bread is 4 francs per loaf, and the price of wine is 4 francs per glass. Pierre has an income of 40 francs per day. Pierre consumes 6 glasses...
Here is a table of prices and the demands of a consumer named Ronald whose behavior was observed in 5 different price-income situations. (a) Sketch each of his budget lines and label the point chosen...
Background Amity Holdings Pty Limited (Amity) is an Australian resident company that was incorporated during 2022. After purchasing several investments including real estate and shares, in 2023 Amity...
2) What is the rate of return in the following cash flow? -4816 +1000 +2000 +3000
3. Assume that the manufacturing of generic medicine XYZ is a perfectly competitive industry. Suppose that the annual demand for this medicine is given by: Q = 1,450 - 30P. There are exactly a...

If good 1 is a neutral, what is its marginal rate of substitution for good 2?

Question:

Step by Step Answer:

Zero x if you take aw...View the full answer

Intermediate Microeconomics

Students also viewed these Business questions