Explain how should she reallocate her expenditures

Reference no: EM1331616

The answer to Utility

Mrs. Wilson buys loaves of bread and quarts of milk each week at prices of $1 and 80 cents, respectively. At present she is buying these two products in amount such that the marginal utilities from the last units purchased of the two products are 80 and 70 utils, respectively. Is she buying the utility-maximizing combination of bread and milk? If not, how should she reallocate her expenditures between the two goods?

Reference no: EM1331616

Questions Cloud

Describe the maximum insurance premium : Describe the maximum insurance premium that the individual is prepared to pay.

Compute utility function that corresponds to a constant : Compute utility function that corresponds to a constant Arrow-Pratt measure of absolute risk-aversion.

Find the primary assets held by the company : Using Target Corporation's 2010 Annual Report, Find the primary assets held by the company?

Make use of a stack for the infix to postfix conversion : comprise a README file describing how to run your program and give an example.make Use of a stack for the infix to postfix conversion.

Explain how should she reallocate her expenditures : Explain how should she reallocate her expenditures among the two goods.

Demographic tools to develop the demographic profile : List at least two demographic tools you can use to help develop the demographic profile.

Define challenges and solutions to e-supply chain management : What challenges do companies face as they try to improve their e-supply chain management? What solutions and applications could you recommend to solve these problems? Please answer specifically.

Involvement of women in terrorism : Include citations and references where necessary - these should be in APA format. Every reaction paper should have citations and references in APA format.

Best practices list of things : Prepare your paper as if you are writing a report to one of your corporate executives and you have uncovered information they will find useful.

User Account

All Pages