consider a quasi-linear utility function: U(x, y) = lnx + y. Show that the MRS is the

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

Question:

consider a quasi-linear utility function: U(x, y) = lnx + y. Show that the MRS is the same on all indifference curves at a given x. Illustrate your result in a suitable diagram.

please show all steps, so I can better understand how you reached your final answer.

Related Book For answer-question

Microeconomics An Intuitive Approach with Calculus

ISBN: 978-0538453257

1st edition

Authors: Thomas Nechyba

See More Books

Posted Date: Mar 01, 2024 09:41 PM

See More Questions

Please answer this question, thank you! By cutting away an $ x-b y-x $ square from each corner of a rectangular piece of cardboard and folding up the resulting flaps, a box with no top can be...
Q1. You have identified a market opportunity for home media players that would cater for older members of the population. Many older people have difficulty in understanding the operating principles...
can someone solve this Modern workstations typically have memory systems that incorporate two or three levels of caching. Explain why they are designed like this. [4 marks] In order to investigate...
In a perpetual inventory system: (a) LIFO cost of goods sold will be the same as in a periodic inventory system. (b) average costs are a simple average of unit costs incurred. (c) a new average is...
Record the following transactions on the books of Hernan Ltd., which uses a perpetual inventory system. (a) Sold $26,000 of merchandise on April 28 to Valez Ltd., terms 2/10, n/30. The goods sold had...
Suppose the following information is related to legal merger: The combinor issued 10000 common shares with $10 par value and $20 FMV to acquire all the voting common stocks of combinee. The business...
P(x > 185) The random variable x is normally distributed with mean = 174 and standard deviation = 20. Find the indicated probability.
The pretax financial income (or loss) figures for Jenny Spangler Company are as follows. 2002 .......$160,000 2003 .........250,000 2004 ...........80,000 2005 ........(160,000) 2006...
Solve the initial value problem dy(x)+3a y(x) = cos (5x) e (-23). y(x)= y (0)=-1
Cardinal Company is considering a five-year project that would require a $2,975,000 investment in equipment with a useful life of five years and no salvage value . The company's discount rate is 14%....
Lindy's Accounting Services (LAS) Limited is financed entirely by common stock currently valued at $26 per share and has a beta of 0.9. The company is expected to generate a level, perpetual stream...
Roots to Branches Corp., a company specializing in event dcor, is considering two mutually exclusive investments. The company wishes to use a CAPM-type risk-adjusted discount rate (RADR) in its...
Austin Grocers recently reported the following 2021 income statement (in millions of dollars): For the coming year, the company is forecasting a 25% increase in sales, and it expects that its...
You must evaluate the purchase of a proposed spectrometer for the R&D department. The purchase price of the spectrometer including modifications is $170,000, and the equipment will be fully...
Use a spreadsheet model to evaluate the project analyzed in Problem 13-8. Problem 13-8 Enterprises is considering buying a vacant lot for an after-tax cost of $1.4 million. If the property is...
Situational Software Co. (SSC) is trying to establish its optimal capital structure. Its current capital structure consists of 25% debt and 75% equity; however, the CEO believes that the firm should...
The compiler will explicitiy create a defauit constructor only if: O a. The class already defines a default constructor Ob. The class does not contain any data members O c.The programmer specifically...
Assume today is the 21st of February. Using the information below, FT Extract, answer the following questions (parts i and ii). You work for a US company that is due to receive 250 million in June...
Endowment Effects and Housing Markets: In end-of-chapter exercises 6.9 and 7.6, we derived the curious prediction that homeowners are made better off by housing price fluctuations regardless of...
Federal anti-trust laws prohibit many forms of collusion in price setting between firms. Labor unions, however, are exempt from anti-trust laws and are allowed to use market power to raise wages for...
Suppose that both consumption and leisure are always normal goods. Keep in mind the underlying cause for deadweight losses from wage-distoring taxation as you answer the questions below. A: Explain...
A layer of water is flowing down a flat plate that is inclined at an angle of $20^{\circ}$ to the vertical. If the depth of the layer is $1 / 4 \mathrm{in}$., what is the shear stress exerted by the...
Basic Concepts by considering the simple one-dimensional steady flow between two parallel plates, Figure 1.1. The area of each plate $A_{y}=1 \mathrm{~m}^{2}$ and the gap between the two plates is...
A slider bearing consists of a sleeve surrounding a cylindrical shaft that is free to move axially within the sleeve. A lubricant (e.g., grease) is in the gap between the shaft and the sleeve to...

consider a quasi-linear utility function: U(x, y) = lnx + y. Show that the MRS is the

Question:

Expert Answer:

To show that the marginal rate of substitution MRS is the same on all indifference curves at a given ... View the full answer

Microeconomics An Intuitive Approach with Calculus

Students also viewed these economics questions