Which good has higher marginal utility

Assignment Help Business Economics

Reference no: EM131392344

If the marginal rate of substitution of coffee for Pepsi is 3 and the price of a coffee is €2.50 while the price of a Pepsi is €1 then which is better value for money: another coffee or another Pepsi? Which good has higher marginal utility?

Reference no: EM131392344

Questions Cloud

Using a budget constraint and an indifference curve : Suppose that good X is on the horizontal axis and good Y is on the vertical axis. Good X costs twice as much as good Y. Ann chooses a bundle that takes up all of her budget. However, the MRS of X for Y at this bundle is greater than 2. Please illustr..

Audiovisual presentation on a health informatics : For the Final Project, you will prepare a four- to five-minute audiovisual presentation on a health informatics topic that includes the following:

Find the mass moment of inertia : A beam is constructed of three identical pieces of wood, each piece having 40 mm by 160 mm by 500 mm dimensions, and 2 kg mass that is uniformly distributed. The cross section of the beam is symmetric about the x and y axes.

What is your holding period return : You purchased 100 shares of General Motors stock at a price of $98.64 one year ago. You sold all stocks today for $100.44. During the year, the stock paid dividends of $5.60 per share. What is your holding period return?

Which good has higher marginal utility : If the marginal rate of substitution of coffee for Pepsi is 3 and the price of a coffee is €2.50 while the price of a Pepsi is €1 then which is better value for money: another coffee or another Pepsi? Which good has higher marginal utility?

Discuss how bernie madoff was able to conduct the fraud : Discuss how Bernie Madoff was able to conduct the fraud? What does it say about human nature? Discuss the role of the regulatory agencies and the reasons for not detecting the fraud?

Tiebout competition : Tiebout competition: a short essay. Discuss how Tiebout competition relates to the real world and give an example of a policy that can be understood through Tiebout competition.

Additional units of output than the unit costs to produce : When a single-price monopolist maximizes profits, price is greater than marginal cost. This means that buyers would be willing to pay more for additional units of output than the unit costs to produce. Given this, why doesn’t the monopolist produce m..

What is the arithmetic average rate of return earned : Calculate the average rate of return for each year from the above information. What is the arithmetic average rate of return earned by investing in Caswell's stock over this period?

User Account

All Pages