### Find the marginal rate of substitution

##### Reference no: EM13978573

A consumer has the following utility function U(x,y) = ln(x) + y

given prices px = 1, py = 10 and income m = 30

(a) find the marginal rate of substitution,

(b) find the interior solution to the consumer's. Utility maximization problem,

(c) find the corner solution to the consumer's utility maximization problem,

(d) find the optimal consumption bundle of x and y.

(e) if the price of good y is py = 2, how does your answer to part d change?

#### Questions Cloud

 Earn by charging the optimal block price : Suppose you are the marketing manager for Fruit of the Loom. An individual's inverse demand for Fruit of the Loom women's underwear is estimated to be P = 25 − 3Q (in cents). If the cost to Fruit of the Loom to produce an item of women's underwear is.. Calculate depreciation deduction and unrecovered investment : A tractor for over-the-road hauling is purchased for \$90,000. It is expected to be of use to the company for 6 years, after which it will be salvaged for \$4,000. Calculate the depreciation deduction and the unrecovered investment during each year of .. What would be the appropriate monetary policy response : If inflation was the most significant problem facing the economy, what would be the appropriate monetary policy response? Externalities connected with consumption and saving : Give two examples of externalities connected with consumption and saving that can be used in arguing for policies aimed at increasing U.S. personal saving. Explain why they can be used that way. Explain what a traditional I.R.A. is. Explain how it in.. Find the marginal rate of substitution : find the marginal rate of substitution, find the interior solution to the consumer's. Utility maximization problem, find the corner solution to the consumer's utility maximization problem, Is this a fair representation of financial performance : SteelTubes had sales of \$300 million this year. Expenses were \$250 million. Aside from these figures, the company also invested in new mills for carbon steel tubing, complete with peripheral loading, straightening, and coiling equipment plus facility.. About the multi-part pricing : Multi-Part Pricing: In the town of Oz, there are two types of tennis players: wizards and imps. Wizards and imps do not socialize, so it would be impossible to start a tennis club that both types would join. Which clientele would you like to attract .. What are the likely consequences of such a policy : A new Fed governor argues during FOMC meetings that the Fed has not sufficiently achieved the goal of helping the economy reach its potential level of output. She asks the committee to be more aggressive, using expansionary monetary policy to increas.. The economics of labor markets : Why would an employer be reluctant to hire a person for a job that entailed a considerable amount of specific on-the-job trainning if the person had a high probability of leaving the firm after a year of two? How can this help explain the flatter age..

### Write a Review

#### How should the manufacturer address this problem

The manufacturer is especially concerned that customers who receive lousy service will blame the manufacturer if the machine breaks down, not the ISOs. How should the manufacturer address this problem?

#### What impact would this have on the market for box of granola

In December 1992, the government began requiring that food contain labels with nutritional information. The information had to be verified by independent laboratories. The price of verification was \$20,000 per food item. What impact would this have o..

#### What is the best option and how much difference will it make

A company will borrow \$50,000 for new equipment and will repay the loan in 5 years. What is the best option and how much difference will it make in the final payoff amount?

#### Would you promote saudi women as managers in the mnc

Indicate three possible adjustments that you would make in order to function as a MNC manager in Saudi Arabia. Indicate one adjustment that you would not be able to make. Would you promote Saudi women as managers in your MNC.

#### Q1 the herbivores society is selling mini bbq vegetable

q1. the herbivores society is selling mini bbq vegetable burgers for 3.00 each. if each individual student has the

#### Which project offers larger net benefits

A town’s recreation department is trying to decide how to use a piece of land. One option is to put up basketball courts with an expected life of eight years. Another is to install a swimming pool with an expected life of 24 years.

#### Illustrates what each nation can produce

Suppose the USA and Canada are considering to trade. Assume there are only two goods in the economy: wheat and corn. The table below illustrates what each nation can produce in a given year.

#### Substitute product can reduce inter-product cannibalization

A firm that acquires a substitute product can reduce inter-product cannibalization by

#### Explain the dilemma in terms of strategic behavior

The well known nationally syndicated columnist David Broder reported the recent findings of two academic political scientists. These scholars found that voters are quite turned off by “negative campaigns” of politicians. Many people went as far as no..

#### Illustrate which of the subsiquent is true.

Suppose the demand for pizza is given by Q=40-2P and the supply of pizza is given Q=P-8. if the price of pizza is \$19, Illustrate which of the subsiquent is true.

#### Service industry production line approach or self-serve

Could a service industry utilize production line approach or self-serve design also still keeps a high customer focus

#### Explain what productivity and standard of living mean

Why is productivity related to the standard of living. In your answer be sure to explain what productivity and standard of living mean. Make a list of things that determine labor productivity.