ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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1. At point S,  the marginal utility of horseback riding per unit cost of horseback riding is higher than the marginal utility of skiing per unit cost of skiing. 2. Bundles S, T, and U are affordable a. both statements are true b. both statements are false c. 1st statement is false, 2nd statement is correct d. 1st statement is correct, 2nd statement is false.
Days of skiing per semester
7
6
5
2
1
0
W
S
T
Ms. Bain maximizes
utility (given her
budget constraint)
at point X, skiing 2
days and spending 3
days horseback riding.
Budget
line
X
U
N
Y
Curve B
Curve A
Curve C
V
4 5 6 7
1 2 3
Days of horseback riding per semester
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Transcribed Image Text:Days of skiing per semester 7 6 5 2 1 0 W S T Ms. Bain maximizes utility (given her budget constraint) at point X, skiing 2 days and spending 3 days horseback riding. Budget line X U N Y Curve B Curve A Curve C V 4 5 6 7 1 2 3 Days of horseback riding per semester
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