What is marvins optimal bundle, Microeconomics

Assignment Help:

Marvelous Marvin spends his money on muffins (m) and a composite good (c) (whose price you may assume is $1 throughout this problem). Marvin's utility is U = m + c and his income (I) is 20.

1. Suppose the price of muffins (pm) is 2. Draw Marvin's budget constraint and the highest indifference curve he can reach.

2. What is Marvin's optimal bundle?

3. Suppose that Marvin has the option of joining a muffin club for a membership fee of $10. Club members can purchase muffins for $0.40 each. Draw Marvin's budget constraint if he joins the club. Draw the highest indifference curve he can reach.

4. What is Marvin's optimal bundle (when he is a member of the club)?

5. Will Marvin choose to join the club? Why?

 


Related Discussions:- What is marvins optimal bundle

Change in consumer taste, Change in consumer Taste/preference: Any chang...

Change in consumer Taste/preference: Any change in consumer taste or preference causes demand to change. Increased taste or preference for a particular good causes demand to inc

Explain tragedy of commons-tax incidence-elasticity, 1. Explain- a. Trag...

1. Explain- a. Tragedy of commons b. Free rider problem c. Diminishing marginal utility d. Diseconomies of scale e. Tax incidence f.  Elasticity g. Gains from

Explain change in demand and a change the quantity demanded, What is the di...

What is the difference between a change in demand and a change the quantity demanded?  There is a distinction among demand and quantity demanded. Demand explains the behavior o

Unemployment, Unemployment: Individuals who want to be employed, and are ac...

Unemployment: Individuals who want to be employed, and are actively seeking work, but can't find a job, are considered ‘officially' unemployed. Individuals who aren't working, but

Breadtalk fixed and variable costs in singapore.., I wanted to the fixed an...

I wanted to the fixed and variable costs of breadtalk in singapore from economic perspective

Allocative efficiency, Allocative Efficiency The production of product...

Allocative Efficiency The production of products and services such that stages of production are closely tied to levels of customer demand.

Define average total cost and average variable cost, Define Average Total C...

Define Average Total Cost and Average Variable Cost Average Total Cost:    The amount spent on producing every unit of output. The average cost is calculated by dividing the t

What is studying platform, What is studying platform? Explain this term in ...

What is studying platform? Explain this term in brief. Studying Platform: A studying platform into modern economics comprises some basic economic principles or theories. Thi

Gas laws, What is the resultant pressure if 2.7 mol of ideal gas at 273 K a...

What is the resultant pressure if 2.7 mol of ideal gas at 273 K and 2.51 atm in a closed container of constant volume is heated to 399 K

Growth of production, GROWTH OF PRODUCTION: The performance of Indian ...

GROWTH OF PRODUCTION: The performance of Indian agriculture during more than half a century of planned economic development can be broadly characterised by three distinct phas

Write Your Message!

Captcha
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