Q18. Economists refer to this pattern, the. person allocates more resources to a purpose, the additional or marginal return from eac unit of the resources diminish. which means A. law of diminishing return B. law of diminishing marginal utility C. law of increasing cost D. A or C
Q: Consider the change in the price of a book depicted in the diagram. The original budget line is Bc.…
A: A budget line represents all the possible combination of goods and services that a consumer can buy…
Q: Troy has preferences for laptops (L), and drones (D). Laptops costs $750 a unit and drones costs…
A: Laptop Cost = 750 Drones Cost = 2000 Income = 15,000
Q: Suppose a student’s entire weekly pocket money (income) is spent on cafeteria’s fast food and hut’s…
A: Budget Line shows the combination of two goods a consumer can purchase with his/her given income and…
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A: The budget constraint of an individual shows different combinations of two goods that an individual…
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A: The economic utility refers to the total utility or level of satisfaction received to a consumer by…
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A: Hours Macdonald spend on working in one week= 80 hours Utility; U(c1,c2)= min{c1,c2} where; c1 is…
Q: Nurse Nancy buys face masks and gloves for her work at a hospital. The price of a box of facemasks…
A: Income and substitution effect: It refers to the effect that will occur due to the change in the…
Q: Simone's initial budget constraint is defined by the following equation:…
A: Hey champ,Welcome to this platform. Here you will get the answer with better quality in minimum…
Q: What is the law of diminishing marginal utility for consumers, what is the learning curve of a…
A: Marginal utility for consumers is defined as the additional utility derived by the consumer from the…
Q: is is clearly a case of: (a) Law of supply (b) Law of diminishing returns (c) Law of diminishing…
A: # In Economics, the satisfaction derived from a unit is calculated in terms of how much utility is…
Q: Question 3 a. Andre has a salary of $1000. He spends his entire budget on shoes and beers. The cost…
A: Budget constraint refers to the combination of two goods that consumers can purchase with the given…
Q: 00t 08 ot Shelter 06 09 OS 50 45 Q, =5 40 or 35 15 Q, =10 30 25 25 Q, =15 20 Q, = 30 15 SE Q, = 20…
A: Production efficiency is the condition in the economy where slope of isoquant of goods are equal to…
Q: Consider the change in the price of a book depicted in the diagram. The original budget line is Bc.…
A: The substitution effect is the effect in the economy in which the consumers substitute one good (X)…
Q: Andre has a salary of $1000. He spends his entire budget on shoes and beers. The cost for a pair of…
A: The consumer consumers both the goods which gives the consumer utility. The consumption of both the…
Q: Elizabeth and Edward both purchase cigarettes and beer at their local shop. The two friends have…
A: The marginal rate of substitution refers to the opportunity cost of a consumer when he is willing to…
Q: In microeconomic terms, the ability of a good or a service to satisfy wants is called and it is…
A: Microeconomics is the branch of social science that deals with issues concerning an individual,…
Q: Andre has a salary of 1000. He spends his entire salary on shoes and beer. The cost far a pair of…
A: Budget constraint represents the combination of two goods that the income earner can purchase given…
Q: . Andre has a salary of $1000. He spends his entire budget on shoes and beers. The cost for a pair…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: 0 Output In the figure, curves 1, 2, 3, and 4 represent the Multiple Choice O ATC, MC, AFC, and AVC…
A: Total cost (TC): - it is the sum of fixed and variable costs incurred in the production process.
Q: A consumer’s budget line is kinked towards the origin (i.e., the kink is pointing towards the…
A: A budget line illustrates the different combinations of two goods that can be purchased with a given…
Q: Amount of input used in the production process affects the Total Utility. O True O False
A: Hi! Thank you for the question As per the honor code, We’ll answer the first question since the…
Q: Units Total Marginal Consumed Utility Utility 10 32 3.2 20 2.8 30 86 40 111 50 2.4 60 158
A: marginal utility (MU) = change in total utility (TU) / change in units (Q) So, change in TU = MU x…
Q: a. Andre has a salary of $1000. He spends his entire budget on shoes and beers. The cost for a pair…
A: Budget constraint: 1000 = 15S + 25B where S: Shoes and B: Beer When S = 0, B = 40 (vertical…
Q: Good X and good Z have a constant marginal rate of substitution (MRS) of one. Draw the…
A: Indifference curve: It refers to the curve that is a combination of two or more goods. It provides…
Q: b. Mary has two dinner options available: eating a home cooked meal for $150 per meal, or at a…
A: The budget line(BL) shows the various combination of two goods(g) that the consumer(C) can afford…
Q: 2. Zhoran has a budget of $36 for fruit. Strawberries cost $4 per pound and grapes cost $3 per…
A: Consumer will maximise utility at a point where slope of an indifference curve is equal to the slope…
Q: 36. Marginal Rate of Product Substitution (MRP a. A measure of substitutability of imputs in…
A: Marginal rate of product substitution in the context of production process can be called marginal…
Q: Question 3 a. Marsha has a salary of $500. He spends his entire budget on milk and cookies. The cost…
A: Hi Student, Thanks for posting the question. As per the guideline, we are providing answer for the…
Q: The president of LeTall University, President John, spends $30 per week on pizzas (qz) and beers…
A: Given, Total money spent = $30 per week Cost of pizza = $3 per slice Cost of beer = $3 per can
Q: The utility function U = f(x, y) is a measure of the utility (or satisfaction) derived by a person…
A: (Note: Since the question has many sub-parts (a-d), the first three sub-parts (a-c) have been…
Q: a. Andre has a salary of $1000. He spends his entire budget on shoes and beers. The cost for a pair…
A:
Q: Refer to the figure at right. Which of the following statements is consistent with the relationship…
A: Price you pay per unit of input is the average expenditure per unit. The extra cost of hiring one…
Q: a. Andre has a salary of $1000. He spends his entire budget on shoes and beers. The cost for a pair…
A: The budget constraint shows all the different combinations of two goods that an individual is able…
Q: 2. Jeff spends all of his money on housing (H) and other stuff (S) and has a diminishing marginal…
A: Answer - Diminishing Marginal rate of substitution :- This means that when individual substitute…
Q: b. Mary has two dinner options available: eating a home cooked meal for $150 per meal, or at a…
A: The marginal rate of substitution is the slope of the indifference curve that tells us the rate at…
Q: Answer the question based on the following graph. Which of the following statements is entirely…
A: The curve is budget constraint that shows budget set that is units of two goods a consumer can buy…
Q: A consumer has $200 per month to be speht on books (good B) and DVDS (good 12- D). 11- Q Market…
A: Income=$200 Two goods : Book(B) and DVDs(D) Prices: Pb=$40 and Pd=$20 Budget constraint is a…
Q: Question 3 a. Marsha has a salary of $500. He spends his entire budget on milk and cookies. The…
A: Dear student, Since you have asked multiple questions, we will solve the first question for you. If…
Q: Write the necessary condition (NC) for the consumer’s optimization problem and illustrate it by…
A: a)
Q: Question 3 a. Andre has a salary of $1000. He spends his entire budget on shoes and beers. The cost…
A: Consumer optimum: At consumer optimum or optimal consumption the budget constraint is tangent to the…
Q: Andre has a salary of $1000. He spends his entire budget on shoes and beers. The cost for a pair of…
A: A consumer obtains utility or satisfaction by consuming goods and services which he is able to buy…
Q: Troy has preferences for laptops (L), and drones (D). Laptops costs $750 a unit and drones costs…
A: given data Troy has preferences for laptops (L), and drones (D). Laptops costs $750 a unit…
Q: Assume Tom is on budget constraint AC and the price of a hamburger is $4.00. Tom's monthly income is…
A: Here we calculate the income of Tom by using the given budget constraint and choose the correct…
Q: Kate has $20. Fish sandwiches cost $5, and a cup of hot chocolate costs $4. What happens to Kate’s…
A: The budget line is defined as the locus of points of a combination of two goods that costs precisely…
Q: Question 3 a. Andre has a salary of $1000. He spends his entire budget on shoes and beers. The cost…
A: The equation of budget constraint can be written as I = Px.Qx + Py.Qy Where I = Income Px = Price…
Q: Andre has a salary of $1000. He spends his entire budget on shoes and beers. The cost for a pair of…
A: Budget constraint equation: Income = Price of good 1 x Quantity of good 1 + Price of good 2 x…
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- Hi, I only need number 3. Microeconomics - Budget Line (BL) Ethan is a collector of pokemon cards and stickers. He has $56 given by his dad to spend on his collection. The store sells them at $14 per pokemon cards and $7 for the stickers. 1. If Ethan spends all his money on pokemon cards, what is the maximum unit that he can purchase based on the given budget If Ethan spends all his money on stickers, what is the maximum unit that he can purchase based on the given budget? 2. Show in a budget line illustration where pokemon cards is in the x-axis and y-axis is the sticker. 3. Compute for the slope based on the illustrated results. What is the implication of the result?It is known that the indifference curve is convex. What does this tell you about the relationship between the goods? 2. Using examples, does an increase in income affect a consumer’s budget line? Does it impact their total utility. 3.You are interested in starting a coffee shop at the University of the West Indies. Provide examples with explanations of explicit costs, implicit cost and sunk costs related to this business.b. Mary has two dinner options available: eating a home cooked meal for $150 permeal, or at a restaurant for $260 per meal. Her weekly budget is $2500.i. Draw Mary’s budget constraint, (put home cooked meal on the horizontalaxis) showing the trade-off between a home cooked meal and eating at arestaurant.
- Microeconomics - Budget Line (BL) Ethan is a collector of pokemon cards and stickers. He has $56 given by his dad to spend on his collection. The store sells them at $14 per pokemon cards and $7 for the stickers. 1. If Ethan spends all his money on pokemon cards, what is the maximum unit that he can purchase based on the given budget If Ethan spends all his money on stickers, what is the maximum unit that he can purchase based on the given budget? 2. Show in a budget line illustration where pokemon cards is in the x-axis and y-axis is the sticker. 3. Find the slope using the illustrated result.(I only need the answer for number 3.)The president of LeTall University, President John, spends $30 per week on pizzas (qz)and beers (qb). At LeTall Pizza, his go-to pizza joint, pizza costs $3 per slice and beeralso costs $3 per can. Assume fractions of the goods are allowed.(a) Draw President John’s budget line (qb on the horizontal and qz on the vertical axis).(b) President John receives a coupon from LeTall Pizza. The coupon, which will expirein a week, allows him to buy a can of beer at a discounted price of $1 per can. Itis, however, only good for a dozen cans of beer. Draw President John’s budget lineunder the coupon. Label any critical points on the budget line.(c) In another week, LeTall Pizza offers a special deal for pizza. For every half dozenslices of pizza bought during the week, one can get two additional slices for free.Draw President John’s budget line under the special deal. Label any critical pointson the budget line.Explain the law of Equi marginal utility with the help of schedule. (
- Penelope utility function is U (a, b) = a+ 10b−b2, where a is the amount of applesconsumed and b is the amount of bananas consumed. He has $100 income. Theprice of apple is $0.5 per lb. Price of banana’s though increases with its purchase.Specifically, buying, b pounds of bananas will cost Pedro b2.a. What is Penelope optimal consumption?b. Now, he suddenly acquires an extra $100 income. How this will changehis allocation?2. Using cheddar cheese, explain in two sentences or fewer the following: a. Income Effectb. Substitution Effectc. Law of Diminishing Marginal ReturnsHi, just wondering why (1+r) is shown in the budget constraint, rather than 1/(1+r)
- Suppose a student’s entire weekly pocket money (income) is spent on cafeteria’s fast food and hut’s meal. Draw his (weakly) budget line if he has total amount of Rs. 1500 per week, the price of fast food is Rs. 150 per unit and the price of meal is Rs. 100 per unit. Draw the new budget lines: a) if his pocket money/income falls to Rs. 1000 per weekDescribe the equilibrium conditions in consumer theory (utility maximization) and in production (output maximization). How are they similar? Briefly talk about the duality between production and cost. (Don't forget to talk about law of diminishing MU, diminishing MRS, diminishing MPs and diminishing MRTS. Clearly define each concept with examples. Make sure to define budget and cost constraints. Indifference curves and isoquants. Graphically derive the equilibrium conditions. Make sure to talk about how output maximization and cost minimization lead to the same maximizing/minimizing input bundles. )Explain how MRS = MRT is derived for consumers who want to maximize their well-being utility subject to their budget constraint. Also explain how marginal utilities divided by each price of the good are equalized across the available goods is also derived for consumers who want to maximize their being utility subject to their budget constraint.
