Question: Mark has an utility function U(A,B) = A^3B^2 the price of apples (A) is 5$, and the price of bananas (B) is 2$. If Mark's

Mark has an utility function U(A,B) = A^3B^2 the price of apples (A) is 5$, and the price of bananas (B) is 2$. If Mark's income were 200$, how many units of bananas would he consume if he chose the bundle that maximized his utility subject to his budget constraint

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock 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

Students Have Also Explored These Related Economics Questions!

Air entrainment in a draining tank (Figure 3A.7) a molasses storage tank 60 ft in diameter is to be built with a draw-off line 1 ft in diameter, 4 ft from the sidewall of the tank and extending...

5.1 (0) We begin again with Charlie of the apples and bananas. Recall that Charlie's utility function is UTA Sappee that the price of apples is 1, the price of bananas is 2and Charlie's income is 60....

Please show the calculations. Thank you. Shelby loves apples and hates bananas. Her utility function is U(a, b) = a ib2, where a is the number of apples she consumes and b is the number of bananas...

1. Dana cannot taste any difference between Coke (c) and Pepsi (p) and so she views one bottle of each as perfect substitutes. Dana's indifference curves form... a. ...right angles b. The answer...

George also likes apples and bananas.The utility function(utility) of it is ( A , B ) = A B .The price of apples is 1 each, the price of bananas is 2 each and the income is 40.Suddenly the price of...

deleted it please Problem: Suppose the person faces the budget constraint given by the following equation: PAA + PB B = 1 were A and B are the quantities of apples and bananas, respectively. PA and...

Problem: Suppose the person faces the budget constraint given by the following equation: PAA + PB B = 1 were A and B are the quantities of apples and bananas, respectively. Pa and Ps are the prices...

Part C - Marginal Rate of Substitution: Slope of Indifference Curve If the marginal rate of substitution is given by the following expression MUR MRS = MUA 5. Building on the Cobb-Douglas utility...

Need answers with explanations 1. Oscar consumes two goods, wine and cheese. His weekly income is $500. a. Describe Oscar's budget constraints under the following conditions: Wine costs $10/bottle,...

Multiple choice : For Multiple choice type questions, Select the best answer for each question - Highlight thecorrect answer (yellow is preferred). No need to show / send your solutions. Problem 1...

#IntermediateMicro 5.1 (0) We begin again with Charlie the apples and bananas. Recall that Charlie's utility fund is U (XA, XB) = XAXB. Suppose that the price of apple 1, the price of bananas is 2,...

Wildhorse Furniture Inc. expects to produce 4650 finished goods (FG) units (in tables) in October and 4950 FG units (in tables) in November. Each table needs 2 meters of direct material (DM) in wood...

In [COOK82], the author proposes that the PC-relative addressing modes be eliminated in favor of other modes, such as the use of a stack. What is the disadvantage of this proposal?

Client's Thinking Process As a financial planner, you must get to know and understand our clients to best serve their needs. One of the more important areas is to understand how your client thinks...

Provide reasons for how and why an individual may become alienated from the following group. (basically think up an example or scenario for each) 1) family- 2) friends 3) religious group

using either your calculator or the tables in appendix14 A, Assume on january 1 , 2020 david tea issues a $1,000, 10 year , 4% (coupon rate) bond that pays a semiannual interest payment and currently...

Explain why the overhead cost related to website optimization was first divided into two categories and then allocated based on number of prints.

Let p, and p, be the respective proportions of women with nutritional anemia in each of two developing countries. If a random sample of 350 women from the furst country yielded 112 women with...

Summit Corporation, a chain of tourism-based businesses, sponsors a defined benefit pension plan for its employees. Summit follows IFRS. The plans trustee reports the following information for...

Prompts Answers Match the following with the most suitable pair Prompts Submitted Answers Basis for development Choose a match Basis for supervision and control Choose a match A summary statement of...

=+3. Is there a maximum absolute amount that a CEO should earn? Is $1 million a year OK? What about $10 million? $100 million? Is it OK to pay a CEO any amount, as long as the net benefit the CEO...

=+5. Primark is a low-cost retailer, while Marks & Spencer seeks to differentiate its products based on quality. Is there a causal link between these two different business-level strategies and the...

=+you get the sense that this is a genuine effort, or is it window dressing?