Compare and contrast the marginal rate of substitution of perfect substitutes and perfect complements. Use diagrams and algebra to aid your exposition.
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- (b) Compare and contrast the marginal rate of substitution of perfect substitutes and perfect complements. Use diagrams and algebra to aid your exposition.
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- How are in-kind transfers best described? Question 36 options: They are obtained only by those who are crafty and politically connected. They are the only form of transfer that is provided by the government. They are nonmonetary items given to the poor through government programs. They are obtained primarily through homeless shelters.Question 28 The marginal rate of substitution measures the: extra utility that a consumer derives from successive units of a product. consumer's willingness to substitute one product for another so that total utility will remain constant. magnitude of the substitution effect. total utility received by a consumer when equilibrium is achieved.Economics: Labor Economics Question: 1 If unskilled labor and robotics are substitutes in production a decrease in the price of robotics is predicted to a. decrease the demand for unskilled labor if the scale effect outweighs the substitution effect. b. decrease the demand for unskilled labor if the substitution effect outweighs the scale effect. c. unambiguously increase the demand for unskilled labor. d. unambiguously decrease the demand for unskilled labor. Question: 2 Assuming capital is fixed in the short run and variable in the long run what would likely happen to wages in the short and long run following a wave of immigration? a. a large decrease in the short run, followed by a smaller decrease in the long run b. a small decrease in the short run followed by a larger decrease in the long run c. an increase in the short run followed by a large decrease in the long run d. a decrease in the short run followed by an increase in the long run Question: 3 Which of the following…
- In many cases, it is reasonable to refer to the ________________ as the price Group of answer choices budget constraint sunk cost opportunity cost marginal utilityQuestion 1 (a) What is the marginal rate of substitution and what is its importance in consumer theory? (b) Compare and contrast the marginal rate of substitution of perfect substitutes and perfect complements. Use diagrams and algebra to aid your exposition. (c) Briefly discuss the following: i. Lexicographic preferencesii. Homothetic preferencesCourse: Introduction to Microeconomics Topic: Consumer Theory and Preferences You are asked to comment on each of following statements, justifying whether statement is true, false or uncertain. You should be supported by graphical analysis as appropriate.Statements that our students arrive at are as follows:(a) To have a consistent ordering and represent convex indifference curves, ONLY axioms of ORDER and TRANSITIVITY are needed, omitting others.b) For a consumer to find baskets that are equally preferred from an initial basket, he must establish a substitution relationship between goods to stay on same indifference curve.c) Given a consumer's income, best that can be done for Consumption Decision is to find a situation where marginal utility per weight spent on good "X" is equal to marginal utility per weight spent on good "Y".
- If the marginal product of labor is 40 units and the marginal product of capital is 200 units, while the price of labor is $50 per worker and the price of capital is $300 per unit of capital, what would the producer do? Group of answer choices The producer would use more labor and less capital. The producer would use the same amount of both capital and labor as before. The producer would use more capital and less labor. The producer would use less of both capital and labor. The producer would use more of both capital and labor.a) For an output level of 40 units, calculate the marginal rate of technical substitution between points A and B. b) Also for an output level of 40 units, calculate the marginal rate of technical substitution between points D and ECourse: Microeconomic - Consumer Theory Explain in detail and model theoretically (be clear about it) establishing the assumptions considered necessary.Considering an individual who will choose 2 goods (X1 and X2) perfect substitutes:(a) How the individual analyzes his preferences and economic constraints (include the respective slopes in the analysis).b) How the individual constructs his demand function. Derive graphically and analyze the individual's demand for a rise in the price of good X1.Attach in each case the respective graphs.
- Course: Introduction to Microeconomics1. Our students Francisca and Javier have a heated discussion about Axioms of Preference and Rational Consumer Choice, from which they raise questions and reflections regarding topics seen in class. You are asked to comment on each of these statements, justifying whether statement is true, false or uncertain. You should be supported by graphic analysis as appropriate.Statements that our students arrive at are as follows:(a) To have consistent ordering and represent convex indifference curves, only Axioms of order (Monotonicity) and Transitivity are needed.b) For a consumer to find equally preferred baskets from an initial basket, he must establish a substitution relationship between goods to stay on same indifference curve.c) Given consumer's income, the best he can do with respect to his consumption decision, is to find a situation where marginal utility per weight spent on good X is equal to marginal utility per weight spent on good Y.In industry, when the price of electricity goes up, the company employs more low-skilled workers. This implies: the substitution effect dominated the scale effect. the scale effect dominated the substitution effect. the substitution effect worked in the same direction as the scale effect. the scale effect was positive. I know the substitution effect and scale effect occur at the same time but can you explain it more precisely? Don't copy the solutions from other sites!Rank the three economic variables from most important to least important.Provide one relevant reason to justify your selection for each of the threepositions. (i.e. a reason why each variable is placed at position 1, 2 and 3.) Rank Variable Justifications 1 2 3
