Two commodities-namely garbage and vinyl records

Assignment Help Business Economics
Reference no: EM13858989

Johnny Rotten consumes two commodities, namely garbage and vinyl records. He keeps the garbage in the backyard where it is eaten by goats and vermin. The reason he accepts the garbage is that people pay him $2 per sack for taking it. Johnny can accept as much garbage as he wishes at that price. He has no other source of income. Each record costs him $6

(a) If Johnny accepts zero sacks of garbage, how many records can he buy?

(b) If he accepts 15 sacks of garbage, how many records can he buy?

(c) Write down an equation for his budget line?

(d) Draw Johnny’s budge line and shade in his budget set.

Reference no: EM13858989

Questions Cloud

Corporation engaged in the manufacturing of shoes : In April 2004, Main Corp., a New York corporation engaged in the manufacturing of shoes, formed a subsidiary corporation, Sub Corp. and transferred to Sub Corp. title to Blackacre, in exchange for a $1,000,000 purchase money mortgage. Blackacre, a co..
What is the externality associated with individual driving : What is the externality associated with an individual driving on a congested highway? how do tolls help alleviate this externality? How should tools be set? (Hint: would you always want the toll to be the same all day?) The steel industry pollutes th..
Outline a system for identifying the functional areas : Articulate the meaning of value-added service as it pertains to patient care services, and argue the major reasons why it matters to add value to patient services. Justify your response.
Different marginal private cost schedule : Suppose you work as research economist at the EPA. There are two firms that operate in a perfectly competitive marker. This implies that each has the same marginal benefit curve, which in this case is horizontal at MB= $100. Each of the firms, howeve..
Two commodities-namely garbage and vinyl records : Johnny Rotten consumes two commodities, namely garbage and vinyl records. He keeps the garbage in the backyard where it is eaten by goats and vermin. The reason he accepts the garbage is that people pay him $2 per sack for taking it.
Explain the role of the federal reserve : Explain the role of the Federal Reserve, who monitors it and is it effective in its job? Evaluate one of the strategies of the Federal Reserve
Vary rate to see what you will pay for the site : Vary rate to see what you will pay for the site and make 20% margin
Write an equation that gives you donnas budget line : Donna buys goods X and Y. She can just afford the bundle X = 6 and Y = 11. She can also afford X = 12 and Y= 8. Each of these bundles exhausts her income. Draw Donna’s budget line. What is the ratio of the price of x to the price of y?
Identify short- and long-term benefits to the organization : Identify short- and long-term benefits to the organization in financial terms

Reviews

Write a Review

Business Economics Questions & Answers

  Illustrate what is the corresponding marginal cost function

illustrate what is the corresponding marginal cost function. at illustrate what o/p is AVC at its minimum.

  Specificities of your business environment

Discuss the strategy of your organization according to the specificities of your business environment - explain how your organization can achieve significant cost savings and marketing benefits through the use of the internet technology.

  Define equilibrium of this economy

Suppose u(c, c') = ln c+β ln c' , there exists N consumers and each consumer lives for 2 periods. In each period they receive an endowment y, y' and are taxed t, t'. Derive the lifetime budget constraint for both the consumer and government. Define e..

  Consider an income guarantee program

Consider an income guarantee program with an income guarantee of $6,000 and a benefit reduction rate of 50%.

  Qlist at least one advantage and one limitation ofapplying

q.list at least one advantage and one limitation ofapplying international trade perceptions which simulation and

  Illustrate what are the consequences of turnover

Simply speaking increasing inventory turnover is an important goal for retail manager. Illustrate what are the consequences of turnover that's too slow.

  Increase sales volume in a purely competitive market

Do you agree or disagree with the statement that " A mononpolist always charges the highest possible price"? Explain B.) why can’t an individual firm raise it price by reducing output or lower its price to increase sales volume in a purely competitiv..

  Explain if increase in demand results from large purchase

Explain if the increase in demand results from a large purchase b the Chinese of a new American-made airplane or a large purchase by Americans of new lower priced Chinese-made high definition Televisions.

  How does the demand curve faced by a monopolist

Elucidate how does the Demand curve faced by a monopolist differ from the Demand curve faced by a perfectly competitive firm.

  Widespread utilize of vending machines in japan

Do vending machines conserve on any possessions other than labor. Does your answer offer any additional insight into the widespread utilize of vending machines in Japan.

  What type of economic flow would be illustrated

What type of economic flow would be illustrated b the purchase of a Mexican candy-making factory by a US company.

  What a man needs to help provide a college education

What a man needs to help provide a college education for his young daughter. He can afford to invest $800/yr for the next four years, beginning on the girl's fourth birthday.

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