Machine requires exact change-two quarters and dime

Assignment Help Business Economics

Reference no: EM13861851

Mike finds a Coke machine in an abandoned part of town and is extremely thirsty. The Coke machine requires exact change - two quarters and a dime. No other combination of coins will make anything come out of the machine. No stores are open where he can make change. Mike will buy as many soft drinks as he can with whatever change he has; the more soda he can buy, the better. Consider Mike's preferences for quarters and dimes.

1. Draw a graph that illustrates all the combinations of quarters and dimes the Mike will treat as indifferent to having 2 quarters and 1 dime. Then draw another graph illustrating all the combinations of bundles and dimes that mike treats as indifferent to having 4 quarters and 2 dimes.

2. Does Mike have convex preferences for quarters and dimes?

3. Does Mike always prefer more of both kinds of money to less?

4. If Mike where holding 7 quarters and 2 dimes how many dimes would you have to give him to give up one quarter? Explain your reasoning.

5. If Mike where holding 2 quarters and 2 dimes how many dimes would you have to give him to give up one quarter? Explain your reasoning

Reference no: EM13861851

Questions Cloud

Economy falls into recession : Which curve shifts, and in what direction, when the following event occur in the domestic car market? a) The U.S. economy falls into a recession. b) U.S. auto works go on strike.

Tasked with regulating single monopoly firm : Suppose you have been tasked with regulating a single monopoly firm that sells 50-pound bags of concrete. The firm has fixed costs of $10 million per year and a variable cost of $3 per bag no matter how many bags are produced. If you wished to regula..

Calculate the amount of interest expense recognized in march : Ferguson Company obtained a $95,000 line of credit from the Metropolitan Bank on January 1, 2014. Calculate the amount of interest expense recognized in March.

Create an account class : Create an account class with following given UML Diagram: UML DIAGRAM Account Class:

Machine requires exact change-two quarters and dime : Mike finds a Coke machine in an abandoned part of town and is extremely thirsty. The Coke machine requires exact change - two quarters and a dime. No other combination of coins will make anything come out of the machine.

Income to the poor familys income before tax and after tax : Rich family before tax 500,000. tax rate 30%. middle class before tax 50000. 20% tax rate. poor family 20000. 2% tax rate. what is the ratio of rich's family's income to the poor family's income before tax and after tax? is this tax progressive?

Design a program that computes pay for employees : Draw a flowchart AND write pseudocode to design a program that computes pay for employees. Allow a user to continuously input employees' names until an appropriate sentinel value is entered.

Opportunity cost of producing each additional truck : The shape of Canada’s production possibilities frontier (PPF) should reflect the fact that as Canada produces more trucks and fewer cars, the opportunity cost of producing each additional truck ______.

Explain the smart bnr system empowers operators : The smart BNR system empowers operators, cut energy, and enhances system reliability. One of the most interesting thing was that the whole plant can be controlled from a computer this is a high technology

User Account

All Pages