Answered: Marginal rate of transformation is…

Marginal rate of transformation is negative because of O A) Law of diminishing marginal utility O B) Law of demand O C) Law of increasing opportunity cost O D) Law of supply

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Consumer Choice Theory

Section: Chapter Questions

Problem 7SQP

See similar textbooks

Related questions

Q: It reflects the peak of the Average Product Curve O a Declining Marginal Utility O b. Diminishing…

A: The average product is the output produced by an input such as labor. It is also known as the…

Q: Solve only when you know correct solution Q)Luka buys smoothies from Tropical Smoothie Cafe. His…

A: As per given details:- Demand Function of Smoothies Q = 30 - 2P Price Function of…

Q: QUESTION 24 When the price of a product rises, consumers with a given money income shift their…

A: In the market, when the price of a product changes, it will have two types of effect in the…

Q: As a consumer consumes more of a good or service, the additional satisfaction of consuming the…

A: In economics, there are different terms to define different situations or the nature of the market…

Q: Production Possibility Curve is also known as O a. None of these O b. Demand curve Oc. Supply curve…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Find what price you should charge for a pair of shoes in order to maximize profit in a

A: The sole objective of any producer is to maximize profits earned. Here, the profit maximization of…

Q: Number of cassette tapes per month Mark's budget constraint is AB. It would pivot to AC if the price…

A: Budget constraint of an individual explains the combinations of two goods that can be purchased with…

Q: The benefit that John gets from eating an additional grape is called the the grape. 中 A. demand for…

A: Total utility refers to total satisfaction derived from consuming a good. Demand curve shows an…

Q: The other name of inferior goods is Giffen goods Select one: a. True O b. False

A: There are mainly two types of goods: normal and inferior. Normal goods are those whose quantity…

Q: It measures of the rate at which a consumer can give up some amount of one good in exchange for…

A: As per the guidelines answer is given to the first question: "Indifference curves represents…

Q: Which of the following is not an assumption of utility analysis. O A. Knowledge of prices O B.…

A: Option C ie Objectivity in determining utility It is not possible to objectively determine who would…

Q: A local clothing store is having a sale in which if you purchase one men's suit at full price, you…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Time left 1:08:43 Suppose that, following a decrease in the supply of good X, we observe that the…

A: Given Given the supply of the good x the price of good y increases.

Q: What is the marginal revenue gained when one more unit of output is sold? Oa. The price at which the…

A: Answer: Marginal revenue: marginal revenue refers to the addition to the total revenue by selling an…

Q: tal revenue for producing eight units of output is $48. Total revenue for producing nine units of…

A: Marginal revenue is the revenue earned when an additional unit is sold. In other words, it is the…

Q: Refer to the above graph to answer this question. If the price of the product is P1, what does the…

A: In the long run a perfect competitive firm earning economic profits would attract more firms to the…

Q: Jill works as a computer specialist for a local manufacturing firm. If Jill receives a raise in her…

A: The income effect is the change in the demand of the consumer for a particular good when the income…

Q: In economics, utility O A. and relative price are the same thing. B. always decreases as income…

A: Relative price of the good is the ratio of price of the good itself and price of other good.

Q: The short-run market supply curve is Select one: O a. horizontal at the current market price. O b.…

A: A market supply is derived by adding the supply curve of all individuals firms. This implies the…

Q: The change on the graph above is most likely the result of O decrease in consumer income O a new…

A: The above graph highlights the shift in supply curve to the left, thereby decreasing the equilibrium…

Q: The marginal rate of substitution (MRS) can be defined as: Select one or more: O a. The amount of…

A: The point at which indifference curve and budget constraint touch is called the optimal level.

Q: A consumer with a fixed income will maximize utility when Och good is purchased in amounts such that…

A: * ANSWER :-

Q: Do firms in a perfectly competitive market exhibit productive efficiency? O Productive efficiency,…

A: Productive Efficiency means that output is produced in such a way that there is no wastage. The…

Q: he law of diminishing returns indicates that C A. the demand for goods O B. because of economies and…

A: The production function exhibits the relationship between inputs and output. Inputs are broadly…

Q: Satisfaction resulting from the consumption of a particular commodity refers to Opportunity Cost. O…

A: "Opportunity cost represents the value which is foregone when choosing in between two or more…

Q: Diminishing marginal utility means that O a. as one consumes more of a good, other things constant,…

A: Total utility is defined as the total amount of satisfaction an individual is able to receive from…

Q: Why is indifference curve convex to origin? a. Due to law of increasing marginal utility O b. Due to…

A: An IC is a graphical representation that combines two items that give the same utility and consumer…

Q: 02. The change in the budget line from B2 to B1 was caused by: O (a) an increase in the consumer's…

A: The budget line is a graphical representation of all potential combinations of the two commodities…

Q: When sales are being maximized, it is true that O demand is elastic. O profits must also being…

A: When a company sells as much of a good or service as it can without going out of business, this is…

Q: Hello, I am having problems with the problems attached to this picture.

A: Since there are many sub part questions present in the question, only the first three sub part swill…

Q: Suppose that an increase in the price of X goods, leads to a decrease in the demand of good Y This…

A: Suppose there are two goods X and Y, increase in the price of X leads to a decrease in demand for…

Q: Another utility function is given%3; U(X, Y) = X0.75 y0.25 %3D s.t. PxX+PyY=l What is the…

A: Given, Utility function, U(X,Y) = X0.75 * Y0.25 , s.t = PxX +PyY Marginal utilities : MUx =…

Q: -1/e Consider the utility funetion 2 (x1.x, ) = ( ax" + (1- a)x,). Ifp= 0, the elasticity of…

Q: Suppose the consumer's utility function is given by U(x,y) =Vxy) The equation for this consumer's…

A: At optimal point, marginal rate of substitution is equal to the slope of budget line.

Q: Perfect competition an efficient outcome because O A. achieves; total surplus is maximized O B.…

A: Efficiency is achieved when there is less and less wastage or very less Deadweightloss(DWL). DWL…

Q: c) How many tubes will he buy if the current price is £0.50 per tube? d) Find Andrea's…

A: Utility refers to the total amount of satisfaction that derived from the consumption of goods and…

Q: Sheldon is very picky and his utility function of consuming cereal (C) and apple juice (A) is…

A: Two goods are perfect complements when they are consumed together. Min utility function shows that…

Q: 4. The total effect of a price change of a commodity is А. Sustitution effect plus price effect B. O…

A: "Correct option is B- substitution effect plus income effect."

Q: 2. Using cheddar cheese, explain in two sentences or fewer the following: a. Income Effect b.…

A: a) Income effect Consider cheddar cheese as a normal good. A rise in the income of consumers leads…

Q: Question 1 Which of the following statements is NOT true? O Both represent the satisfaction obtained…

A: Here, Utility can be defined as the satisfaction derived from the consumption of a commodity and…

Q: A consumer has a utility function given by U(x, y) = 3x + 2y. The price of x and y are both equal to…

A: U(x,y)= 3x2 + 2y2 Px= 1 Py= 1

Q: derive and sketch the optimization condition for profit maximization.

Q: Suppose that the following Cobb-Douglas utility function is given U(X,Y) = X³y/2, Which of the…

A: Marginal rate of substitution refers to the ratio of marginal utility of two goods.

Q: Assume Coal Ben is selling Hamburger plates that have an average cost of $3 at an initial price o $6…

A: Introduction Demand and cost of burger has given. So as per DCM model, price of per burger is $6 and…

Q: Consumer A's utility function is U,(x,X2)=x+2x32, Consumer B's utility function is Ug(x,X2)=…

A: Utility function:- The utility function describes the happiness or enjoyment that consumers get from…

Q: U(x, y) = (xª + y®)!/a in this function the elasticity of substitution o = 1/(1 – ò)]. a. Show that…

A: The indirect utility function is the maximum utility level obtained at the given prices and income.…

Q: Quantity of additional output arising from additional input is measured using Marginal Product. O…

A: The amount of products or the services that is produced in a certain time period is known as output…

Q: 3. The second glass of lemonade gives lesser satisfaction to a thirsty biy, this is a clear case of…

A: The second glass of lemonade gives lesser satisfaction to a thirsty biy, because as he consumes more…

Q: QUESTION 18 Which of the following best explains why isoquant curves have the "curved" shape that…

A: Isoquant refers to the curve that shows the different combinations of inputs that can produce the…

Question

Marginal rate of transformation is negative because of
A) Law of diminishing marginal utility
O B) Law of demand
O C) Law of increasing opportunity cost
O D) Law of supply

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Describe in your own words :Law of Demand Demand schedule Utility Marginal Utility Diminishing Marginal Utility Income Effect Substitution Effect Demand Curve Determinants of Demand Change in Demand v. Change in Quantity Demanded Price changes v. Non-price determinant changes
The law of diminishing marginal utility helps to explain the direct relationship between price and quantity supplied. a. True b. False
The mathematical equation that presents the inverse relationship of price and quantity that a consumer is willing and able to buy at a given time, ceteris paribusSingle choice. a. Budget function b. Demand function c. Supply function
Which among the following is not true?Select one:a. None of the answers are correctb. When marginal utility declines, a higher price is needed to induce the consumer tobuy more of a particular productc. When marginal utility declines, a lower price is needed to induce the consumer tobuy more of a particular productd. All the answers are correcte. Utility maximizing rule and the demand curve are logically consistent
When the price of a certain product was considered to be "low", consumers spent $5 million monthly on it. After the price doubled, the total consumer expenditures increased to $7 million. Recently you read that this means that the demand curve for this product is upward sloping. Do you agree? Explain.
The term “law of diminishing marginal utility” used in explaining downward sloping demand curves, others things constant, is best described by which of the following statements? The total satisfaction you obtain from consuming a good tends to fall. The average satisfaction you obtain from consuming a good tends to fall. The additional satisfaction you obtain from consuming an additional unit of a good tends to fall. The total satisfaction you obtain from the good tends to rise.
If any changes in the price of one product, leave the quantity demanded of other product unchanged, then the demand for the *.two products is unrelated False O True
Q.1.15 The marginal utility of a good or service declines as one more unit is consumed because: (a) supply slopes upwards.(b) consumers are constrained by income. (c) of the law of diminishing marginal utility. (d) prices move with demand.
What is the law of diminishing marginal utility for consumers, what is the learning curve of a producer? It seems that as the producer becomes more efficient at producing their product; the consumer tends to have less and less satisfaction from consuming one additional unit of the producer's product. Is this true (think in terms of only one producer and consumer)? Explain your answer.
Which of the ff. is correct with regards to the demand curve? A. If the price of the good increases, the demand curve for the good will shift to the left B. If the price of the good increases, the consumers have the incentive to look for substitutes, thus, the quantity demanded and its price are inversely related C. Income of the consumers is written on the vertical axis D. Varying preferences of the consumers is reflected in the demand curve and is written on the horizontal axis
The law of demand states that as product’s price increases, its quantity demanded decreases, assuming other factors remain constant or ‘ceteris paribus’. Why is it necessary to assume that other factors remain constant?