Macroeconomics
13th Edition
ISBN: 9780134735696
Author: PARKIN, Michael
Publisher: Pearson,
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Question
Chapter 9, Problem 22APA
(a)
To determine
Marginal rate of substitution.
(b)
To determine
The marginal rate of substitution.
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Pizzas (₁) cost $9.00 each. A cup of coffee (₂) costs $3.00. Joe's income is $520.00, and his preferences are represented by the utility function
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4. Jerry lives in a dormitory that offers soft drinks and chips for sale in vending
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chips 5birr per bag.
A. Write the expression for Jerry's marginal rate of substitution between soft
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she purchase per week?
5. Given the long run production function is Q = 200LK3 calculate
A. AP and AP.
B. MPL and MPK C. MRTSLK
D. elasticity of substitution
6. Given the total cost function Q = Q - 4Q? + 14Q +60
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Chapter 9 Solutions
Macroeconomics
Ch. 9.1 - Prob. 1RQCh. 9.1 - Prob. 2RQCh. 9.1 - Prob. 3RQCh. 9.1 - Prob. 4RQCh. 9.1 - Prob. 5RQCh. 9.2 - Prob. 1RQCh. 9.2 - Prob. 2RQCh. 9.2 - Prob. 3RQCh. 9.2 - Prob. 4RQCh. 9.3 - Prob. 1RQ
Ch. 9.3 - Prob. 2RQCh. 9.3 - Prob. 3RQCh. 9.3 - Prob. 4RQCh. 9.3 - Prob. 5RQCh. 9 - Prob. 1SPACh. 9 - Prob. 2SPACh. 9 - Prob. 3SPACh. 9 - Prob. 4SPACh. 9 - Prob. 5SPACh. 9 - Prob. 6SPACh. 9 - Prob. 7SPACh. 9 - Prob. 8SPACh. 9 - Prob. 9SPACh. 9 - Prob. 10SPACh. 9 - Prob. 11SPACh. 9 - Prob. 12APACh. 9 - Prob. 13APACh. 9 - Prob. 14APACh. 9 - Prob. 15APACh. 9 - Prob. 16APACh. 9 - Prob. 17APACh. 9 - Prob. 18APACh. 9 - Prob. 19APACh. 9 - Prob. 20APACh. 9 - Prob. 21APACh. 9 - Prob. 22APACh. 9 - Prob. 23APACh. 9 - Prob. 24APACh. 9 - Prob. 25APACh. 9 - Prob. 26APACh. 9 - Prob. 27APACh. 9 - Prob. 28APACh. 9 - Prob. 29APACh. 9 - Prob. 30APA
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Similar questions
- Jane's utility function is U = 4XY, where X= number of sandwiches per week and Y = number of salads per week. a. What are Jane's marginal utility of X and marginal utility of Y? b. What is Jane's marginal rate of substitution of sandwiches for salads (if salads are on the y- axis and sandwiches are on the x-axis)? c. Jane's income is $400, the price of a sandwich is $2, and the price of a salad is $4. How many sandwiches and how many salads does Jane consume to maximize her utility? d. When the price of a sandwich is $1, what is her new optimal bundle? e. Plot a graph and show your optimal bundles in parts (c) and (d) on the same graph.arrow_forwardJoe Bob has a utilityfunction given by u(x1, X2) = x1 + 2x1x2 + x2.a. Compute Joe Bob's marginal rate of substitution.b. Joe Bob's straight cousin, Al, has a utility function v(x1 x2) = x1 + x2 .Compute Al's marginal rate of substitution. And Do u(x1,x2)and v(x1,x2) represent the same preferences?c. Can you show that Joe Bob's utility function is a monotonic transformationof Al's? (Hint: Some have said that Joe Bob is square.)arrow_forwardprice of bagels is_____ dollars and the price of coffee is_____dollars. (b) Both Kylie and Kona make rational breakfast choices that maximize their respective utilities. Kylie's marginal rate of substitution is_____ and Kona's marginal rate of substitution is_____ (c) If Kona were forced to consume Kylie's bundle and vice versa, then Kona's marginal rate of substitution would be______greater than", "less than", or "equal to") Kylie's marginal rate of substitution.arrow_forward
- 2. Suppose John's utility function is UX,Y) = 4VXY , where X is consumption of beer and Y is consumption of pizza. For this utility function, ( Calculus Kahuna say: MUx = 2VY/X and MUy = 2\X/Y ) a) What happens to the marginal rate of substitution between X and Y as consumption of X increases?arrow_forwardJulio receives utility from consuming food (F) and clothing (C) as given by the utility function U(F,C) = FC. In addition, the price of food is $2 per unit, the price of clothing is $7 per unit, and Julio's weekly income is $50. What is Julio's marginal rate of substitution of food for clothing when utility is maximized? Explain. Julio's marginal rate of substitution equals A. 3.50, which is the price of clothing divided by the price of food. B. 0.29, which is the price of food divided by the price of clothing. O C. 0.29, which is the price of clothing divided by the price of food. D. 3.50, which is (minus) the slope of the budget line. O E. 3.50, which is Julio's level of satisfaction.arrow_forwardJulio receives utility from consuming food (F) and clothing (C) as given by the utility function U(F,C) = FC. In addition, the price of food is $2 per unit, the price of clothing is $7 per unit, and Julio's weekly income is $50. What is Julio's marginal rate of substitution of food for clothing when utility is maximized? Explain. Julio's marginal rate of substitution equals A. 3.50, which is the price of clothing divided by the price of food. B. 0.29, which is the price of food divided by the price of clothing. C. 0.29, which is the price of clothing divided by the price of food. D. 3.50, which is (minus) the slope of the budget line. E. 3.50, which is Julio's level of satisfaction. Suppose instead that Julio is consuming a bundle with more food and less clothing than his utility maximizing bundle. Would this marginal rate of substitution of food for clothing be greater than or less than your answer above? Explain. If Julio is instead consuming a bundle with more food and less clothing…arrow_forward
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