Find marginal utility of domestic travel and foreign travel

Assignment Help Business Economics
Reference no: EM13802505

Jerry receives utility from days spent traveling on vacation domestically (D) and days spent traveling in a foreign country (F) as given by the utility U(D,F)=DF. The price of a day spent traveling domestically is $160 and in a foreign country $200. Jerry's annual budget for traveling is $8,000.

a) Find the marginal utility of domestic travel and foreign travel.

b) Using the marginal utilities in your answer to (a), find Jerry's marginal rate of substitution

c) Find the slope of the budget constraint line

d) Find Jerry's utility maximizing choice of days traveling domestically and in a foreign country

e) Find also his utility level from consuming that bundle in your answer to (d)

Reference no: EM13802505

Questions Cloud

Common website navigation types : Common website navigation types include all of the following except
About a content chunk on a web page : Which of the following is true about a content chunk on a web page?
Suppose an industry facing an inverse demand equation : Suppose an industry facing an inverse demand equation equal to P = 120-4Q faces a new pollution control law that shifts its constant marginal cost of production from C1 = 50 to C2 = 68. Compute the social costs of regulation in this industry.
Management section of a formal solicited proposal includes : The management section of a formal solicited proposal includes
Find marginal utility of domestic travel and foreign travel : Jerry receives utility from days spent traveling on vacation domestically (D) and days spent traveling in a foreign country (F) as given by the utility U(D,F)=DF. The price of a day spent traveling domestically is $160 and in a foreign country $200. ..
Difference between a solicited and an unsolicited proposal : What is the difference between a solicited proposal and an unsolicited proposal?
Most accurate about feasibility studies : Which of the following statements is most accurate about feasibility studies?
Generally part of a formal report : Which of the following is generally part of a formal report?
Essential pieces of information in the abstract section : The three essential pieces of information in the abstract section of an informal document are

Reviews

Write a Review

Business Economics Questions & Answers

  Change of consumer and producer

How does the change of consumer and producer surplus compared to the tax revenue.

  Consumption is measured as gallons consumed every month

Suppose taxes are measured in cents as in the first case, but consumption is measured as gallons consumed every month.

  What were the reasons for the surpluses during those time

How does a government budget surplus affect the U.S. economy? Identify two periods in recent history in which the United States has run budget surpluses.

  Explain how to expand the business by hiring an assistant

You have opened your own word-processingservice. You bought a personal computer, and paid $5,000 for it.However, due to the cost changes in the computer industry, thecurrent price of an equivalent machine is $2,500.

  Illustrate what will the effect be on equilibrium output

If the government purchases also taxes are both increased by $100 billion simultaneously illustrate what will the effect be on equilibrium output.

  Trade off between the production of two goods

Consider a country’s trade off between the production of two ‘goods’: environmental quality (extent to which their environment, including air and waters, are clean), and all other goods. Why is there a trade off? Explain.

  Describe the free trade equilibrium

Describe the free trade equilibrium. Then compute and graph the following effects of an import quota that limits imports to 100 bags.

  Discuss the concepts of marginal product and marginal cost

Discuss the concepts of marginal product and marginal cost. Also discuss the importance of trends in these and other economic measures and how time-series analysis (trend analysis) can be used or misused to make important management decisions

  Denied boarding despite holding a confirmed reservation

As a consequence of a 1976 court case that Ralph Nader won against an airline that had "bumped" him, the federal government adopted a rule requiring airlines to compensate people who were denied boarding despite holding a confirmed reservation.

  Elucidate why a system of marketable pollution permits

Elucidate why a system of marketable pollution permits leads to less costly pollution abatement and a higher concentration of polluted areas than a command-and-control system.

  Compare and contrast principles of institutionalist school

Compare and contrast the principles of the institutionalist school to neoclassicism. What tenets of neoclassicism do you think institutionalist economists would reject? Defend your selection.

  The blair company three assembly plants are located in

The Blair Company's three assembly plants are located in California, Georgia, and New Jersey. Previously, the company purchased a major subassembly, which becomes part of the final product, from

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