suppose you are at a bundle, such that MRS>MRT, how should you change your consumption so as

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

Question:

suppose you are at a bundle, such that MRS>MRT, how should you change your consumption so as to maximize utility subject to your budget constraint?

Related Book For answer-question

Intermediate Microeconomics

ISBN: 978-0393123968

9th edition

Authors: Hal R. Varian

See More Books

Posted Date: Mar 02, 2024 10:29 AM

See More Questions

In our development of consumer theory, we made a big point about the fact that neoclassical economics does not put much stock in the idea of cardinally measuring utility (in terms of units of...
Citizens of Zephyronia consume only two goods and do not trade with the outside world. There is a fixed supply of labor in Zephyronia, which can be applied to production of either good. Good 1 is...
Suppose you have $400,000 to spend on a house and other goods (denominated in dollars). A. The price of 1 square foot of housing is $100 and you choose to purchase your optimally sized house at 2000...
Consider the function f(x) = sin(x). (a) Give the Taylor polynomial Ps(r) of degree 5 about a = /6 of this function. Note: use the exact values of sin(7/6)= 1/2 and cos(/6)= 3/2. (b) Give the nested...
A gardener uses a 60-N wheelbarrow to transport a 250-N bag of fertilizer. What force must she exert on each handle? 250 N 60 N 0.7 m 0.15 m 0.15 m
Alvarado Company had the following common stock balances and transactions during the current year: What was Alvarados current year weighted average shares outstanding for basic EPS? a. 78,000 b....
Taj Mahabub was the founder and CEO of GenAudio, a Colorado-based audio technology company. GenAudio had struggled financially practically since its formation, and Mahabub wished to secure a...
The cash account for Ambulance Systems at February 29, 2012, indicated a balance of $20,580. The bank statement indicated a balance of $24,750 on February 29, 2012. Comparing the bank statement and...
Discuss the importance of an object-oriented database. How does it differ from the relational model?
You are the project manager for the deployment of new Smart Board technology across the UNBSJ Campus. Please see attached Project Charter for additional project details. (Note: You will need to...
The CEO of ABC Inc. is dynamic and visionary in every area but one. He does not believe in providing corporate training to his personnel. In fact, he is fond of saying, I hire personnel and pay them...
The Office of Technology Assessment (OTA) reports that only 11 to 15 percent of all machine tools in the U.S. are automated; the majority of those automated are found in large companies. A Census...
Suppose that the interest rate on one-year bonds is 4 percent and is expected to be 5 percent in one year and 6 percent in two years. Using the expectations hypothesis, compute the yields in two- and...
Go to www.erpgenie.com/general/project.htm and access the reading on Six Steps to Successful Sponsorship. Consider the critical success factors it identifies for managing an IT project...
Consider the concerns that a project manager may face when closing a project illustrated in Table 14.2. What are the most difficult concerns to deal with? What are the easiest? Why?
3. A service facility consists of two servers in series, each with its own first in, first out (FIFO) queue. A customer completing service at server 1 proceeds to server 2, while a customer...
B made an issue of 150,000 $1 ordinary shares at a premium of 20% the proceeds of which is received by cheque. What is the correct journal to record this? A. Bank Share capital Share premium B. Bank...
A parent has two children named A and B and she loves both of them equally. She has a total of $1,000 to give to them. (a) The parents utility function is U(a, b) = a + b, where a is the amount of...
In an isolated mountain village, the only crop is corn. Good harvests alternate with bad harvests. This year the harvest will be 1,000 bushels. Next year it will be 150 bushels. There is no trade...
Grinch is the sole owner of a mineral water spring that costlessly burbles forth as much mineral water as Grinch cares to bottle. It costs Grinch $2 per gallon to bottle this water. The inverse...
Decide whether the system in Problem 4 is stable. A linear dynamic system is stable if the homogeneous solution of its mathematical model, subjected to the prescribed initial conditions, decays. More...
Perform the indicated operations, if defined, for the following vectors and matrices. $\left(\mathbf{B}-\mathbf{v} \mathbf{w}^{T} ight) \mathbf{A}$ -2 1 -3 1 1 A = 1 -3 2 1 32 B = V= W = 0 0 4 5
Perform the indicated operations, if defined, for the following vectors and matrices. $\left(\mathbf{A B}^{T} ight) \mathbf{v}$ -2 1 -3 1 1 A = 1 -3 2 1 32 B = V= W = 0 0 4 5

suppose you are at a bundle, such that MRS>MRT, how should you change your consumption so as

Question:

Expert Answer:

the marginal rate of substitution MRS is greater than the marginal rate of transformation MRT it implies that the consumer is willing to give up relat... View the full answer

Intermediate Microeconomics

Students also viewed these economics questions