Approximate difference in mu of shrimp vs lobster

Assignment Help Business Economics
Reference no: EM131169381

Assume the price of large gulf shrimp is dollar 18 per pound and that the price of hard shell Maine lobster tails is dollar 36 per pound. Your professor uses 1/2 pound of lobster or 1/2 pound of shrimp with various pasta dishes. In a typical month he cooks 4 shrimp/pasta dinners and 1 lobster pasta dinner. Is his marginal utility of a lobster based dinner equal to the marginal utility of a shrimp dinner for him? If so, explain. If not, what is the approximate difference in MU of shrimp vs. lobster? 

Reference no: EM131169381

Questions Cloud

Spending enough on fighting pollution : “Pollution is causing $100 million worth of damage to the environment and we are only spending $1 million to reduce pollution. We are clearly not spending enough on fighting pollution.” Is this statement true? How can marginal analysis needed to answ..
Good definition of public good and free riders : When people decide to buy cars, they have to decide between fuel economy and other features. It is argued that there is a "public good" issue involved in this decision. Why might that be? How the existence of public-good characteristics affect the pr..
Divided between capital expenditures and labor : A company has 6800 dollars to invest, which must be divided between capital expenditures and labor. Each unit of labor costs the company 10 dollars, and each unit of capital costs 10 dollars. Therefore 10L+40K=6800, where L and K are the units of lab..
Price discriminating monopolist take to increase profits : Suppose the price at which a monopolist is selling its output is $8, and the marginal revenue associated with the last unit of output sold is $7. Suppose further that the marginal cost of producing the last unit of output sold is $6. Which of the fol..
Approximate difference in mu of shrimp vs lobster : Assume the price of large gulf shrimp is dollar 18 per pound and that the price of hard shell Maine lobster tails is dollar 36 per pound. Your professor uses 1/2 pound of lobster or 1/2 pound of shrimp with various pasta dishes. what is the approxima..
Producing its profit maximizing level of output : Suppose Marcy's Medical Machines operates in a perfectly competitive market and is producing its profit maximizing level of output. Suppose further that at this level of production, its average total cost is $2500, average variable cost is $2300, and..
Which of the two countries has higher relative wage : Suppose Australia is a capital (K)-abundant country, and Sri-Lanka is a labor (L)-abundant country. Both produce labor and capital intensive goods with the same technology. Which of the two countries has a higher relative wage, w/r, before trade? Wou..
Diminishing marginal returns to labor means : Diminishing marginal returns to labor means
Production average total cost of producing ice cream : Suppose, at a given point in time, Stephanie's Soda Fountain sells ice cream in a perfectly competitive market and is producing its profit-maximizing level of output. Suppose further that at this level of production its average total cost of producin..

Reviews

Write a Review

 

Business Economics Questions & Answers

  Produces and sells a single product

Holdt Inc. produces and sells a single product. The selling price of the product is $110.00 per unit and its variable cost is $70 per unit. The fixed expense is $160,000 per month. The break-even sales (units) are:

  What are the nash-cournot equilibrium price-quantities

An incumbent firm, Firm 1, faces a potential entrant, Firm 2 that has a lower marginal cost. The market demand curve is P = 120 – Q. First 1 has a marginal cost of $20, while Firm 2’s is $10. What are the Nash-Cournot equilibrium price, quantities, a..

  Calculate and compare the profit under each flight

Calculate and compare the profit under each flight. Should the airline replace its night flight from Los Angeles with a morning flight?

  The production function for hamburger heaven

The production function for Hamburger Heaven (HH) is q=10KL. Given that the marignal product of labor, MPL = 10K, marginal product of capital, MPK = 10L, and marginal rate of technical substitution (MRTS = MPL MPK ). How much labor HH should employ t..

  Government agency that insures commercial bank deposits

The name of the government agency that insures commercial bank deposits is the:

  What is the equation of the supply curve if input prices

What is the equation of the supply curve if input prices are $10 and the price of Z is $20? Graph the supply curve that you found in part a) showing intercepts and slope. What is the minimum price at which the firm will supply any of good X at all?

  Elucidate why currency depreciation leads to an improvement

Elucidate why a currency depreciation leads to an improvement in a countries balance of trade.

  When evaluating potential distribution partners

When evaluating potential distribution partners, what are the most important attributes to evaluate? Discuss their relevance for different product categories.

  About price-searching firms and two-part pricing

Use your knowledge about price-searching firms and two-part pricing to advise the company below. A company has a bar and is trying to decide on the cover charge (if any) and price for each drink. It has done a modest regression study in which it aske..

  How could war stimulate the economy

How could war stimulate the economy? Explain in detail, making sure to mention the impact government purchases have on Gross Domestic Product (GDP). Also, make sure you make mention of how government purchases affect the private sector. Finally, desc..

  What happens when price ceiling is below the equilibrium

What happens if the price floor is above the equilibrium? and what happens when price ceiling is below the equilibrium?

  Based on the analysis of the bubble policy

Based on the analysis of the bubble policy given in this chapter, discuss why transaction costs are so important in explaining the success or failure of the EPA's bubble program. How would you devise a program that minimized the transaction costs of ..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd