Emily gets utility from compact discs (c), movies (m), and pizza (p). If her utility function...
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Emily gets utility from compact discs (c), movies (m), and pizza (p). If her utility function is U(c, m, p) = 2cm2 + 4p + ep², which of the following bundles of compact discs, movies, and pizza does Emily prefer? (a) (2,3, 4) (b) (5, 1, 2) (c) (3,3,0) (d) (0, 10, 0) (i) Suppose p = 4. Find the Marginal Rate of Substitution (MRS) between c and m for each of the above utility functions. Is MRS increasing or decreasing when m 7 and c= 15? Explain your results. (ii) Suppose m = 7. Find the Marginal Rate of Substitution (MRS) between c and p for each of the above utility functions. Is MRS increasing or decreasing when c= 15 and p= 4? Explain your results. (iii) Suppose c= 15. Find the Marginal Rate of Substitution (MRS) between m and p for each of the above utility functions. Is MRS increasing or decreasing when m =7 and p= 4? Explain your results. Emily gets utility from compact discs (c), movies (m), and pizza (p). If her utility function is U(c, m, p) = 2cm2 + 4p + ep², which of the following bundles of compact discs, movies, and pizza does Emily prefer? (a) (2,3, 4) (b) (5, 1, 2) (c) (3,3,0) (d) (0, 10, 0) (i) Suppose p = 4. Find the Marginal Rate of Substitution (MRS) between c and m for each of the above utility functions. Is MRS increasing or decreasing when m 7 and c= 15? Explain your results. (ii) Suppose m = 7. Find the Marginal Rate of Substitution (MRS) between c and p for each of the above utility functions. Is MRS increasing or decreasing when c= 15 and p= 4? Explain your results. (iii) Suppose c= 15. Find the Marginal Rate of Substitution (MRS) between m and p for each of the above utility functions. Is MRS increasing or decreasing when m =7 and p= 4? Explain your results.
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U 2cm2 4p cp2 1 a For option a U 2 x 2 x 3 x 3 4 x 4 2 x 4 x 4 36 16 32 84 For option b U 2 x 5 x 1 ... View the full answer
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