How to maximize the net benefits from consumption

Reference no: EM13233855

Assume an individual is currently using all of his income to consume two goods, X and Y. If the prices of X and Y are $3 and $8, respectively, and the marginal rate of substituion of X for Y is four, is this individual maximizing his net benefits from consumption? If not, what should he do to increase his total utility?

Reference no: EM13233855

Questions Cloud

Define the constitutional isomers 2-methylbut-1-ene : Consider the constitutional isomers 2-methylbut-1-ene, 2-methyl-2-ene and 3-methylbut-1-ene. when each of these alkenes is subjected to cataltic hydrogenation (H2, Pt), a single product results. which of the following best describes the structural..

Define and discuss the open shop movement : Define and discuss the open shop movement. Include a specific example and analyze its success or failure, and why. Write a 2-3 page paper using APA format.

Compute the heat released per gram of the compound : Calculate the heat released (in kilojoules) per gram of the compound reacted with oxygen. The standard enthalpy of formation of benzene is 49.04 kJ/mol.

Select three benefits from those discussed in this unit : For each prospective employee listed, select three benefits from those discussed in this unit. Describe the reasons the employee might prefer each of the three benefits.

How to maximize the net benefits from consumption : Assume an individual is currently using all of his income to consume two goods, X and Y. If the prices of X and Y are $3 and $8, respectively, and the marginal rate of substituion of X for Y is four, is this individual maximizing his net benefits

Calculate the diameter of the ball : A child playing in a swimming pool realizes that it is easy to push a small inflated ball under the surface of the water while a large ball requires a lot of force

Which of the following is wrong : Which of the following is wrong? A. LDX #$5000 B. LDX #2550 C. LDX #$10000 D. LDX #$00 Explain Why!

Distinguish between a general benefit and a specific benefit : Distinguish between a general benefit and a specific benefit. Why do customers respond positively to specific benefits?

Define the term orginizational culture : Define the term orginizational culture. How might this company information enhance a sales presentation?

User Account

All Pages