Find the optimal consumption bundle

Assignment Help Business Economics
Reference no: EM13832480

Julie spends all of her $60,000 salary on vacationing and remodeling projects. Her typical vacation costs $2,000 and the remodeling projects cost $4,000 each. Julie's willingness to trade remodeling jobs for one additional vacation is given by MRS = R/2V, where R is the number of remodeling projects she takes on and V is the number of vacations she takes.

a) What two conditions must be met for Julie to be maximizing her utility?

b) Solve the conditions from part a to find the optimal (i.e., utility maximizing) consumption bundle.

Reference no: EM13832480

Questions Cloud

Develop a simple digital animation using adobe flash : This assignment requires you to develop a simple digital animation using Adobe Flash. Ten images of digits (0.jpg to 9.jpg). These images will be used for your student number in the animation specified below.
What percent of adults would qualify for membership : According to a study, the scale of scores on an IQ test of adults is approximately Normal with mean 98 and standard deviation 17. The organization MENSA, which calls itself "the high-IQ society," requires an IQ score of 130 or higher for membership. ..
Draw an edgeworth box showing the initial allocation : Comedian Jay leno once took his show to michigan and gave away free tickest so that out-of-work individuals could attend. He later objected when he discovered that someone tried to sell his free ticket on eBay, and eBay subsequently banned the sale o..
Economic pacts have for international managers : Please write in your own words. How has NAFTA affected the economies of North America and the EU affected Europe? What importance do these economic pacts have for international managers in North America, Europe, and Asia?
Find the optimal consumption bundle : Julie spends all of her $60,000 salary on vacationing and remodeling projects. Her typical vacation costs $2,000 and the remodeling projects cost $4,000 each. What two conditions must be met for Julie to be maximizing her utility? solve the condition..
Identify all event elements that require promotion : Assignment: Arts Festival or Sporting Exhibition - PowerPoint and Audio Visual Assignment. Identify all event elements that require promotion. Target your promotion to those market segments that will support your event. Include eMarketing strategies ..
Alternatives to the sources of technological progress : Do developing countries have other alternatives to the sources of technological progress you mentioned in the question above? Explain your answer. Do you see any reasons developing countries may choose to have poor patent protection? Are there any da..
Contrast a public good versus a private good : Assume that the price of smart phones increased from $420 to $444 per unit. The manufacturer decides to supply 15,000 units instead of 12,000. Calculate the price elasticity of supply. Is supply elastic or inelastic? Compare and contrast a public goo..
What is the trend in weekly price of each sku-Using Stata : How many cases of Robert Mondavi Private Select were sold each year from 2005-2008? a. Construct a table showing the total number of cases sold each year. b. Construct a bar graph showing the total number of cases sold each year. What is the trend in..

Reviews

Write a Review

Business Economics Questions & Answers

  Show the marginal revenue product curves

Draw a graph that shows the marginal revenue product curves of the two franchises. Make sure your axes are properly labeled. Show the equilibrium level of competitive balance and the equilibrium level of player salaries.

  Qa woman managing a photocopy establishment for 2500000 per

q.a woman managing a photocopy establishment for 25000.00 per year decides to open her own duplicating place. her

  Estimated the demand for cable television services

An economist has estimated the demand for cable television services in Eastern Pennsylvania, and has found the following elasticities: If the cable television company wants to increase revenues, it should increase price.

  About the growth accounting

Consider Solow's model when the production function is Y = 1000K0.3L0.7. The population growth rate is 2%, ? = 0.1 is the depreciation rate and s = 0.25 is the savings rate. Compute how much more output there is in this economy immediately thanks to ..

  Illustrate what role do fiscal and monetary policies

Illustrate what role do fiscal and monetary policies have to lead to higher or lower budget deficits.

  Sometimes market activities production buying and selling

Sometimes market activities (production, buying, and selling) have unintended positive or negative effects outside the market's scope.

  Co9mpute the percentage change in the shares of household

Co9mpute the percentage change in the Shares of Household Income of Quintiles between 1968 and 2008. Notice the dates are in reverse chronological order. Why do you think it has changed in the manner it has.

  Held constant when a demand curve for a specific product

What is being held constant when a demand curve for a specific product (shoes or apples, for example) is constructed? Explain why the demand curve for a product slopes downward to the right.

  How do the rules of the game

How do the “rules of the game” help determine who will be poor and who will not? (Hint: How did the Civil Rights Act of 1964, which forbade discrimination on the basis of race, likely affect the incomes of African Americans compared to the incomes of..

  Why does strong mono tonicity implies local non satiation

Elucidate why does strong mono tonicity implies local non satiation but not vice versa

  Calculate the price elasticities of demand in each market

Calculate the price elasticities of demand in each market and discuss these in relation to the prices to be charged in each market.

  Provides a conceptual base for managers

Provides a conceptual base for managers to assess and enhance strategic performance in a business organization through the integration of the core business functions, effective resource management, and sound leadership.

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