Marginal Rate of Technical Substitution
MRTS reaches a manufacturer when a part of the product is lowered to sustain the manufacturing level when the other part is extended. It is the level of the quantity that is lowered when one extra volume is used, and the output is unchanged.
Preferences and Utility Analysis
Before understanding what is preference and utility analysis, it is very important to understand the terms preference and utility separately.
Given the indifference curve above, which of the Points a, b, c, d, or e. Yields the highest happiness. Explain why briefly.
Which of the 5 Points yields the same happiness? Explain why briefly.
At which Point or combination of x and y, should you choose. Explain why briefly.
Step by step
Solved in 2 steps