hen comparing point A, which lies within a utilities possibilities frontier, with point B, which lies on the same utilities possibilities frontier: A. B is necessarily more efficient than A. B. A is necessarily more equitable than B. C. A is necessarily more efficient than B. D. B is necessarily more equitable than A.

hen comparing point A, which lies within a utilities possibilities frontier, with point B, which lies on the same utilities possibilities frontier: A. B is necessarily more efficient than A. B. A is necessarily more equitable than B. C. A is necessarily more efficient than B. D. B is necessarily more equitable than A.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter6: Demand Relationships Among Goods

Section: Chapter Questions

Problem 6.4P

See similar textbooks

Similar questions

Peter, John, and James are discussing how to share three chocolate bars and three bags of chips. For each of the following statements, state whether the statement is TRUE or FALSE and provide a short explanation for your choice. a) It is always Paretig efficient for Peter, John, and James to have one chocolate bar and one bag of chips each.
Briefly evaluate each of the following statements about utility. A. Each individual pursuing their own utility maximization always leads to total utility in society to be maximized B. When societal efficiency is maximized so is utility C. Dean quits being a highly paid lawyer($300,000) and instead becomes a worker for a nonprofit providing bed-nets in regions affected by malaria making $30,000. What effect is this expected to have on: economic efficiency, Dean’s utility, and worldwide utility. (no need to explain simply state up, down, same, or uncertain)
Assume that Raymond has $ 37.00 to spend on pretzels and beer. The price of pretzels is $3.00 and the price of beer is $5.00. Marginal utilities for each good are given below. Units MU P MU P / P P MU B MU B / P B 1st 18 6 40 8 2nd 15 5 30 6 3rd 12 4 25 5 4th 9 3 20 4 5th 6 2 15 3 6th 3 1 5 1 If Raymond is maximizing his utility, then
Say that Laura (L), Maureen (M), and Carrie (C) are three individuals who are contemplating the purchase of some amount of good X. Units of X can be produced at a constant marginal cost of 24. The following equations show how the marginal benefit (M B) that each individual places on X varies with the quantity she consumes: L: MB(L) = 30 - X M: MB(M) = 24 - X C: (MB(C) = 20 - X (a) How much of this good should they purchase if X is a private good? (b) How much of this good should they purchase if X is a public good? (c) Construct a diagram to illustrate your answer to part b.
Using an Edgeworth box, illustrate and explain the concept of Pareto efficiency
The first graph presents the utility maximizing combinations of bread and brie that Hayden chooses when the price of bread is $1.00 per loaf and the price of brie is either $4.00 or $6.00 per wheel. The second graph shows Hayden's demand curve for brie, based on those utility maximizing points. What are the specific prices and quantities of brie associated with points A and B on Hayden's demand curve? Bread (loaves) 26 16 BC2 24 BCI Brie (wheels) Price ($) Market for brie B Demand Quantity (wheels of brie)
The following table shows the marginal utility per dollar of apples and pears for five consumers: Consumer Marginal Utility Per Dollar Apples Pears Darnell 8 5 Eleanor 7 8 Jacques 6 6 Kyoko 5 4.5 Musashi 4 4 Darnell, Eleanor, and Kyoko are not optimizing over their choice of fruit. In the following table, indicate which fruit each consumer should increase consumption of in order to achieve the optimal fruit consumption bundle. Consumer Apples Pears Darnell Eleanor Kyoko
explain the Constructing Utility from Demand in microeconomics
Your professor has $20 to spend on Sour Patch Kids and Cherry Coke Zero, the two supplies most useful in the production of economics papers. Cherry Coke Zero costs $1.50. Sour Patch Kids cost $2.50. The professor gets utility from the goods as follows: Quantity of Cherry Total Utility Marginal Utility of Marginal Utility per Coke from Cherry Dollar for Quantity of Sour Patch Total Marginal Marginal Utility Utility of Utility per from Sour Sour Dollar for Zero Cherry Coke Cherry Kids Patch Patch Sour Coke Zero Coke Kids Kids Patch Zero Zero Kids 0 0 X 0 0 X X 1 15 1 35 2 27 2 62.5 3 36 3 82.5 4 42 4 95 5 45 5 100 6 45 6 97.5 (Some columns were left empty. You may, but are not required to, fill them in if you will find it helpful to do so.) a) Write the professor's budget constraint. b) Sketch the professor's budget constraint. c) What is the opportunity cost of one Cherry Coke Zero? d) What is the opportunity cost of one unit of Sour Patch Kids? e) What is the professor's optimal…
The income of consumer has got increased and the consumer's demand for good X has also increased. What type of good is good X?
At the start of the week, Marie decides to buy a pie. Does this imply that the utility she receives from this pie is greater than or less than her opportunity cost of purchasing the pie? Marie is thinking about purchasing a second pie. Do we expect the marginal utility she receives from the second pie to be greater than, less than, or equal to the marginal utility she receives from the first pie? Explain your answer.
For Unit 4 Learning Journal, you will use the marginal utility formula to choose between two products. Catherine is having dinner at the Yellow Restaurant. She wants desert after eating her entree. She is trying to decide between a cookie or a slice of pie. The cost of a cookie is $5 and the cost of a slice of pie is $8. Refer to the Unit 4 Learning Journal Marginal Utility spreadsheet Compute the marginal utility for cookie and slice of pie Compute the marginal utility per dollar What is the utility maximizing choice for a cookie and slice of pie? Explain what the utility maximizing choice means. Discuss how you could use marginal utility to make consumer choices