A consumer is trying to decide between purchasing one smoothie or one cappuccino. They get 30 utils of enjoyment from cappuccino and the cappuccino cost $5 and they get 40 utils of enjoyment from the smoothie. Below what price will they decide to buy the smoothie? This cannot be solved unless we are given the price of the smoothie. $8.00
Q: A Los Angeles firm uses a single input to produce a recreational commodity according to a production…
A: The production function is a numerical condition calcupation the connection between the factors and…
Q: Product differentiation is the main difference between perfect competition and monopolistic…
A: The ideal market system has complete and symmetric knowledge and no transaction costs for all…
Q: Exhibit: Costs of Producing Bagels (cents) Quantity of Bagels per Period Costs 10 1 2 3 4 5 6 7…
A: Total cost is the sum of total fixed cost and total variable cost. Fixed cost are the cost that…
Q: A furniture firm has the capability to producer chairs and tables. Management wants to evaluate…
A: Economies of scale refers to the cost advantages experienced by a firm when output increases.…
Q: Suppose that there are two markets; an agricultural products market and a water firm that is and the…
A: Consumer surplus is the monetary benefit that consumers receive when they pay a price lower than…
Q: Suppose that food stands in San Francisco is a perfectly competitive industry, and one of them (the…
A: In a perfectly competitive market, a firm is a price taker as it cannot change the market price due…
Q: For a family that earns $200,000 annually, if avocados fall in price by 5%, this creates a…
A: The amount of money needed to acquire something is its price. Insofar as it represents what…
Q: In a perfectly competitive industry we expect long-run equilibrium price to equal [Select] [Select]…
A: Perfect competition is the market structure where there are large no of buyers and sellers selling…
Q: • Explain why an increase in U.S. interest rates relative to UK interest rates would affect the…
A: The cost of converting one currency into another across borders or economic zones is known as an…
Q: what the rationing problem is, and one strategy for dealing with it.
A: The price level determines an equilibrium by equating demand and supply in a market. The price…
Q: 6. Suppose that there are two identical firms in the silver mining industry. The cost curve of each…
A: Since you have given multiple sub-parts questions, we will solve the first subpart for you. If you…
Q: According to Porter's "diamond" model, the success or competitive advantage of a nation at the…
A: The Theory of the National Competitive Advantage of Industries, often known as Michael Porter's…
Q: P Pm C a 0 b a b C Qm e Qc MR D MC Which area represents dead weight loss from a single-price…
A: A monopolist will produce where MR = MC MR is the marginal revenue MC is the marginal cost Dead…
Q: If the NII increase by $6,000, caused by a 2% decrease in Interest Rates. According to Dollar Gap…
A: A bank's net interest income (NII) is the difference between the interest payments made on its…
Q: QUESTION 11 If a person pays to own a factor of production indefinitely then he or she must have…
A: Option C Purchase Price
Q: Two prospecting partners, Curtin and Dobbs, find an area containing 40 ounces of gold. For each day…
A: Given: Curtin and Dobbs are two prospecting partners. Both alternatively serve as watchman at night.…
Q: 5. Consider the MONOPOLY depicted where demand is given by Pb = 107 - 7 Qb and the Monopolist's MC =…
A: Given Demand function: Pb=107-7Qb Marginal cost MC=25 A monopoly has market power and it produces…
Q: Difference between labour market and goods market
A: Labor is a factor of production used to produce the goods and services in the production process.…
Q: When one country can produce a product at a lower cost in terms of other goods, that country is said…
A: Opportunity cost is the cost of producing one good in terms of other. Opportunity cost shows the…
Q: An economy is described by the following equations: C= 2,000 + 0.75 (Y – T) Ip= 900 G= 2,000 NX=…
A: Autonomous Expenditure is summation of spending by the all sectors. i.e. Autonomous Expenditure = C…
Q: QUESTION 13 Suppose that the amount of capital increases. What will happen to the wage? a. Increase…
A: The increase in the amount of capital would lead to increase in the marginal productivity of labour.…
Q: 1. A university lab is a research contractor to NASA for in-space fuel cell systems that are…
A: Electric-powered Gas-Powered Solar-Powered First Cost -4500 -3500 -6000 Annual Cost -900 -700…
Q: 4. What is the opportunity cost of producing one unit of Wheat in the U.S? 5. Which country should…
A: Opportunity cost is the cost of producing one good in terms of other. Opportunity cost shows the…
Q: Price discrimination creates economic inefficiency. False True True, if the firm is a monopolist,…
A: Price discrimination is charging different prices for the same goods and services. The seller of the…
Q: Total health expenditures are a function of price and O A. Reimbursement B. Value Assets Quantity
A: The expenditure on health is a major expenditure of every household .It takes a major proportion of…
Q: In the following payoff matrix how many dominant strategies exist? (Joey's payoffs are the left…
A: Here equilibrium point is attained where more of one or both is not entertained as the outcome…
Q: Suppose there is a remote stretch of highway along which two restaurants, Last Chance Café and…
A: Nash Equilibrium The Nash equilibrium is a constant state in game theory where no player can gain…
Q: The demand for Peet's Coffee over a week should be more elastic than the demand for Peet's Coffee…
A: Price elasticity of demand: It measures the percentage change in the quantity demanded for a 1%…
Q: This is the payoff matrix from Civil War, which we discussed in class. Which choices should Iron Man…
A: Here captain America is player 1 and Iron man is the player 2 . Now when the player 1 chooses fight…
Q: Suppose an increase in the cost of land increases the firm's fixed costs, as a result, average total…
A: The profit is maximized where MR = MC. MR is the marginal revenue and is defined as the revenue…
Q: Due to the diminishing marginal returns in the short run production, for a typical firm, in the…
A: Diminishing marginal returns refers to the situation when firm is facing an increase in marginal…
Q: Suppose Sarah's pottery studio produces 5 units of output, its average cost is $100, average…
A: Fixed costs refers to those costs of production that are incurred at the time of starting up of the…
Q: 1. Accumulate PhP 2,150 for 2.5 years using 3.6% simple interest. 2. Discount PhP 7,800 for 125 days…
A: Disclaimer: “Since you have asked multiple questions, we will solve the first question for you. If…
Q: 4. If you borrowed PhP 250,000 from a bank payable for two years and 6 months at 10% simple discount…
A: Given information: Future value (F): PhP 250,000 Time period (t): 2.5 years Interest rate (r):…
Q: n some countries (eg., Denmark and the Netherlands) people often commute by bicycle instead of cars,…
A: Consumer Surplus: Consumer surplus is the net benefits that the consumer receives by purchasing…
Q: 100.00 90.00 80.00 70.00 60.00 50.00 40.00 30.00 20.00 10.00 O $60.00 O $100.00 $40.00 0 O $20.00 2…
A: In monopolistically competitive market and monopoly, A firm or monopolist will produce where MR =…
Q: A company's unit costs based on 500,000 units are: Variable costs $32 Fixed costs 20 The normal unit…
A: In microeconomics theory, the opportunity cost of a particular activity is the value or benefit…
Q: uppose in a particular labor market the demand curve increases (shifts right). What will happen to…
A: Labor market is the place where workers and employees interact with each other . Equilibrium wage is…
Q: The following graph plots the short-run and long-run Phillips curves (SRPC and LRPC, respectively)…
A: According to the Phillips curve, unemployment and inflation have a consistent inverse relationship.…
Q: whether the firm should start to produce because in the first unit the MC is more than the price…
A: In a competitive market , A firm will produce where P = MC P is the price MC is the marginal…
Q: How Cournot and Stackelberg models are different? In Cournot profits are zero and in Stackelberg…
A: Cournot competition refers to an economic model in which competing enterprises determine a quantity…
Q: Which of the following is a permissive subject matter for good-faith bargaining? O seniority O…
A: A party's commitment to meet and bargain with another party at convenient times is referred to as…
Q: Two entrepreneurs, A and B, independently choose whether to sell their product in country X or…
A: In game theory, a dominating strategy is one in which a player's optimum course of action is one…
Q: DPWH is considering building a new expressway going to Bicol to cut the travel time of consumers…
A: Benefit-cost ratio method: The B-C ratio method is used to analysis for public sector projects. In…
Q: Given the following Multiple linear regression [sales (in $1000) and price (in dollars)]: The below…
A: In a multiple linear regression model, there is more than one independent variable whose effects are…
Q: With unemployment low and the inflation rate near the target level, when the coronavirus crisis was…
A: The cost of borrowing money will normally decrease if the federal funds rate decreases. For greater…
Q: 7. All of the following except one are initials of international trade organizations. Which is the…
A: The exchange or trade of products and services between various countries is referred to as…
Q: QUESTION 7 An increase in the wage will cause workers to a. work less O b. buy their boss a gift c.…
A: In the labor leisure model, there the impact of increased wages on the leisure ( in turn working…
Q: Which of the following is an important factor critical to the conduct of international business? O…
A: International trade is referring to the trade of products and services among multiple nations. Trade…
Q: Canada is a party to which of the following RTAS (regional trade agreeme A.ASEAN b.EU C.NAFTA…
A: Trade agreements are contracts between two or more trading nations that promote a favorable trade…
29.
A consumer is trying to decide between purchasing one smoothie or one cappuccino. They get 30 utils of enjoyment from cappuccino and the cappuccino cost $5 and they get 40 utils of enjoyment from the smoothie. Below what price will they decide to buy the smoothie?
This cannot be solved unless we are given the price of the smoothie.
$8.00
$6.00
$6.67
Step by step
Solved in 2 steps
- Suppose John decides to buy 4 units of food and 4 units of clothing with his $12 budget. Would his marginal utility per dollar spent on food be greater than or less than his marginal utility per dollar spent on clothing? What does this tell you about how he should substitute food for clothing if he wanted to increase his utility without spending any more money?John likes Coca-Cola. After consuming one Coke, John has a total utility of 10 utils. After two Cokes, he has a total utility of 25 utils. After three Cokes, he has a total utility of 50 utils. Does John show diminishing marginal utility for Coke or does he show increasing marginal utility for Coke? Suppose that John has $3 in his pocket. If Cokes cost $1 each and John is willing to spend one of his dollars on purchasing a first can of Coke, would he spend his second dollar on a Coke, too? What about the third dollar? If John’s marginal utility for Coke keeps on increasing no matter how many Cokes he drinks, would it be fair to say that he is addicted to Coke? *use tables and/or graphs if possible, please original workLee has calculated her marginal utility from buying pizza slices and soda (shown on the table in the worksheet) and wants to use these data to decide how to rationally spend the money she has. The price of pizza is $2.00 and the price of soda is $2.00 question 9 (a) given these prices and your worksheet calculations, what is the first product lee will buy? (b) would lee ever buy four slides of pizza? Why/why not? question 10Given the data in your worksheet, how many pizza slices and sodas lee should buy to maximize her total utility if she rationally spends her budget of 10.00? question 11 when the price of pizza changes, lee's MU/$P changes. If the price of pizza decreases to $1.50 and her budget decreases to $7.50, how many pzza slices and sodas lee should buy to maximize her total utility?
- You have 6 hours to study for 2 exams tomorrow. The relationship between the time studying and test scores is shown below. Economics Psychology Hours 0 1 2 3 134 4 5 6 Score 55 3 70 70 63 76 81 85 88 Hours 0 1 2 3 4 5 6 Score 55 16 70 73 75 75 66 76 a. Use the rule for determining optimal purchases to decide how many hours you should study each subject. Treat each point on an exam like 1 unit of utility and assume you are equally interested in doing well in economics and psychology. You should study economics for hours and psychology for hours.Explain utility and its connection to consumer behavior1. A consumer has an income of $3024 to spend each day. The only two goods the consumer is interested in purchasing are goods A and B. The marginal-utility schedules for these two goods are shown in the table below. The price of B does not change and is $378. The marginal utility per dollar from B is also shown in the table. But the price of A varies as shown in the table. The marginal utility per dollar from A when the price of A is $1512 and $756 is shown in the following table. Good A Good B Quantity MU MU/$1512 MU/$756 MU MU/$378 1 24 2 15 3 12 4 8 5 6 6 4 48 32 24 16 8 4 ||||| ||||| |||
- QUESTION 12 The relationship between the marginal utility that George gets from eating a bag of cookies and the number of bags he eats per month is as follows: Bags of Cookies Marginal Utility 1 2 3 4 5 6 20 16 12 8 4 0 George receives 2 units of utility from the last dollar spent on each of the other goods he consumes. If cookies cost $4 per bag, how many bags of cookies will he consume per month if he maximizes utility?You have 6 hours to study for 2 exams tomorrow. The relationship between the time studying and test scores is shown below. Economics Psychology Hours 0 1 2 3 4 5 Score 63 71 78 84 89 93 96 Hours 0 1 2 3 4 5 6 Score 63 69 74 78 81 83 84 a. Use the rule for determining optimal purchases to decide how many hours you should study each subject. Treat each point on an exam like 1 unit of utility and assume you are equally interested in doing well in economics and psychology. You should study economics for hours and psychology for hours. b. Suppose now that you are a psychology major and that you value each point you earn on a psychology exam as being worth three times as much as each point you earn on an economics exam. Now how many hours will you study each subject? You should study economics for hours and psychology for hours.A consumer has a choice of spending $20,000 on a Honda or $14,000 on a Kia. She was observed buying a Kia during the weekend. Does this mean the consumer prefers the Kia to the Honda? Explain your answer
- 7. Fill out the table below to give an example of each type of utility based on the scenario. Sunglasses in a kiosk in the mall in July; buy one, get one free Christmas wrapping paper in a clearance bin at a craft store in January Hearing aid batteries at the gift shop on a cruise Umbrellas at an outdoor sporting event Firewood bundles at the visitors center at the state park Form Time Possession Place2. Tom spends all his $100 weekly income on two goods, apples and bananas. His utility function is given by U (A, B) = AB, where A and B stand for the quantity of apples and bananas consumed by Tom. If PA = $4 and PB= $10, how many apples and bananas will he consume? Make sure you write out the utility maximization problem explicitly, including the decision variable(s). What if his utility function is given by U (A, B) = A0.5B 0.5?12. Wayne has $2,000 dollars to spend on Grey Cup football tickets (measured in numbers along the horizontal axis) and on other goods (measured in dollars on the vertical axis). His preferences and budget line are represented in the figure below. Wayne's optimal choice is to buy 4 tickets, but the maximum he can buy from the box office is just two tickets. What is the box office price for a ticket? $ willing to pay a scalper for two more tickets? $ What is the maximum price Wayne is other goods (S) 2,000 1,600 1,200 800 400 4. 6 8 10 2. Number of Grey Cup Tickets
