What is a typical indifference curve for the case

Assignment Help Macroeconomics
Reference no: EM13208686

Suppose Michael purchases only two goods, hamburgers (H) and Cokes (C).

a) What is the relationship between MRS H,C and the marginal utilities MU H and MU C ?

b) What is a typical indifference curve for the case in which the marginal utilities of both goods are positive and the marginal rate of  substitution of hamburgers for Cokes is diminishing. Explain the relationship between the indifference curve and the marginal rate of substitution of hamburgers for Cokes.

c) Suppose the marginal rate of substitution of hamburgers for Cokes is constant. In this case, are hamburgers and Cokes perfect substitutes or perfect complements?

d) Suppose that Michael always wants two hamburgers along with every Coke. Draw a typical indifference curve. In this case, are hamburgers and Cokes perfect substitutes or perfect complements?

Reference no: EM13208686

Previous Q& A

  What is the breakeven level of hour of work

Assume that a welfare program pays $100 per week if a person does not work and reduces the welfare benefit dollar for dollar with earnings. Assume that the individuals does not have any other nonwage income.

  Rational for wealth maximization as a goal for a firm

What is the rational for wealth maximization as a goal for a firm and what are the key financial statements and why they are important?

  What affect will fashion craze have on demand for watches

A popular magazine reports that wrist watches are becoming the highest fashion craze. What affect will this have on the demand for watches, and what will happen to the price and quantity of watches sold on the market

  Explain chief cells and mucous-secreting cells

Gastric juice is made up of substances secreted from parietal cells, chief cells, and mucous-secreting cells. The cells secrete HCl, proteolytic enzyme zymogens, mucin, and intrinsic factor

  Write a c program that determines if the input is a prime

write a C program that determines if the input is a prime guassian number or not. if it is, the output should print the number entered and say this is a prime number. If it is not, then the output should print the factor of the number entered and ..

  How to solve it

: For this report go back to the same location as your first field report. It has been some t ime since your first field report. Observe how the bird activity has changed. Do you see the same species? More males than females, females than males? Has ..

  Explain what minor product might be expected

what minor product(s) might be expected (please draw the full reaction)? Give the detailed reaction mechanism leading to the final product (major).

  Explain expand at constant temperature from a volume

A gas is allowed to expand at constant temperature from a volume of 2.0L to 11.2 L against an external pressure of 0.750 atm. If the gas absorbs 128 J of heat from the surroundings

  What is the effective price received by the company

What is the effective price received by the company for the gold - On April 1st the price of the gold is $1000 and the December futures price is $1015. On November 1st the price of the gold is $980

  What do toms indifference curves relating hamburgers

What do Tom's indifference curves relating Hamburgers (horizontal axis) to Hot-dogs (vertical axis) look like Graph and explain the shape of your indifference curves. Do these indifference curve imply that Tom will only eat hamburgers

Reviews

Write a Review

 

Similar Q& A

  Computing the optimal level of inputs

Find the optimal level of inputs L* and K* that minimize the cost of producing Q0. What is the cost of production associated to L* and K*?

  Formula to derive the total percentage return

ou bought the bond for $1,040, after 6 months you received a coupon of $35 and after another 6 months you received another $35 coupon and you sold the bond for $1,070.

  Analyze also elucidate real-life economic problems

Critically analyze also elucidate real-life economic problems also opportunities by applying economic concepts, principles, and theory.

  Elucidate policy or policies may be required to ensure

Elucidate policy or policies may be required to ensure the rate of inflation is low

  Explain why the b in diba may be more appropriate for buzz

Clutch and Buzz are both thirty years old. Both are saving for retirement. Clutch is also saving in order to make a down payment on the purchase of a new home. Buzz plans on renting an apartment indefinitely.

  Description for the purely competitive market

In other situations it would be reasonable for a purely competitive wheat farmer to raise his price per bushel because he could reduce his variable costs by selling less at a higher price. True or false, and why?

  Equilibrium of the dad-das model

Explain the effect of such a shock on the equilibrium of the DAD-DAS model - Suppose that at time t-1 inflation is zero and there were no shocks in the economy.

  Suppose that property rights to environment are establish

Suppose that property rights to the environment are established, and Jack has them. Further, assume that Jack and May can engage in costless bargaining.

  The present spot exchange rate and the exchange rate.

The present spot exchange rate is $1.55/£ and the 3M forward rate is $1.50/£. On the basis of your analysis of the exchange rate.

  Explain the price output relation

The Portland Sea Dogs, AA affiliate of the Boston Red Sox major league baseball team, have enjoyed a surge in popularity.

  Explain how does the state of economy affect federal budget

Explain how does the state of the economy affect federal budget. Explain how can macroeconomic variables inter-relate to each other.

  Tradeoff in current consumption and savings

Economists agree that an economy cannot increase without savings. This means forgoing current consumption, saving, and investing in capital goods.

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