Question

question 1 :Why do functions with DEcreasing marginal utility in each good bow inward/toward the origin....

question 1 :Why do functions with DEcreasing marginal utility in each good bow inward/toward the origin. Draw a diagram and how that shape captures diminishing MU in both goods.  

question2 : Consider the utility function with U = 4X0.25Y0.50
a. What is the marginal utility of X?
b. What is the marginal utility of Y?
c. What is the marginal rate of substitution?

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
1)Find Marginal Utility for x and determine if it is diminishing Marginal utility for y and...
1)Find Marginal Utility for x and determine if it is diminishing Marginal utility for y and determine if its diminishing Marginal rate of Substitution of x for y (MRSxy) and determine if its diminishing U (x, y) = 2x2/3y1/3 U (x, y) = x3 + 4y1/4 2. Continental Long Distance Telephone service offer am optional package for in-stare calling whereby each month the subscriber gets the first 50 minutes of in-state calls free, the next 100 min at $0.25/min, and...
11. Find the marginal utility of good X and the marginal utility of good Y ifor...
11. Find the marginal utility of good X and the marginal utility of good Y ifor the consumer, whose preferences are described by utility function U(x;y) = 2x + y. 12. Find the marginal utility of good X and the marginal utility of good Y for the consumer, whose preferences are described by utility function U(x;y) = xy2. 13. Explain, what should be taken into account in order to find the consumer’s optimal choice of goods. 14. Outline and explain...
Consider the following utility functions over goods X and Y for two individuals: Daves utility function...
Consider the following utility functions over goods X and Y for two individuals: Daves utility function : Ud(x,y) = 6min(x,y) Jess's Utility function is Uj (x,y) = 6x + 3Y Draw Daves indifference curve map for two specific utility levels: U= 6 and U = 12 Draw Jess indifference curve map for two seperate utility levels: U=6 and U=12 Explain the preferences between the two What is the MRS for Dave? and for Jess?
1.Suppose there are two consumers, A and B. The utility functions of each consumer are given...
1.Suppose there are two consumers, A and B. The utility functions of each consumer are given by: UA(X,Y) = X^1/2*Y^1/2 UB(X,Y) = 3X + 2Y The initial endowments are: A: X = 4; Y = 4 B: X = 4; Y = 12 a) (10 points) Using an Edgeworth Box, graph the initial allocation (label it "W") and draw the indifference curve for each consumer that runs through the initial allocation. Be sure to label your graph carefully and accurately....
Bernoulli’s log utility function for wealth reflects decreasing _____ with increasing wealth Assets Risk Marginal utility...
Bernoulli’s log utility function for wealth reflects decreasing _____ with increasing wealth Assets Risk Marginal utility Cost None of the above Linear utility functions model: Risk-neutral attitudes Risk-seeking attitudes Risk-averse attitude None of the above Concave utility functions model: Risk-neutral attitudes Risk-seeking attitudes Risk-averse attitudes All of the above. John Doe is a rationale person whose satisfaction or preference for various amounts of money can be expressed as a function U(x) = (x/100)^2, where x is in $. How much...
Consider a consumer whose preferences over the goods are represented by the utility function U(x,y) =...
Consider a consumer whose preferences over the goods are represented by the utility function U(x,y) = xy^2. Recall that for this function the marginal utilities are given by MUx(x, y) = y^2 and MUy(x, y) = 2xy. (a) What are the formulas for the indifference curves corresponding to utility levels of u ̄ = 1, u ̄ = 4, and u ̄ = 9? Draw these three indifference curves in one graph. (b) What is the marginal rate of substitution...
True/False Questions. For each question below, please answer “true” or “false” and explain why. An answer...
True/False Questions. For each question below, please answer “true” or “false” and explain why. An answer without an explanation will result in no credit. 2. (5 points) Max Gross has the utility function U(x,y) = max⁡{x, y}. If the price of x is the same as the price of y, Max will buy equal amounts of x and y. 3. (5 points) Charlie’s utility function is U(x,y) = xy^2. His marginal rate of substitution between x and y does not...
1.For each of the following utility functions, show whether the underlying preferences are monotonic, find the...
1.For each of the following utility functions, show whether the underlying preferences are monotonic, find the marginal utilities of x and y, and show if these are increasing, constant or diminishing: a.u(x, y)=x2+4y2 b.u(x,y)=2x+5y c.u(x,y)=3x+5y1/2 d.u(x,y)=4xy 2.For the utility functions in question 1, find the MRTS. What would the indifference curves look like for each?
(1) Explain why the assumption of convex preferences implies that “averages are preferred to extremes.” Make...
(1) Explain why the assumption of convex preferences implies that “averages are preferred to extremes.” Make both a formal argument and an intuitive one (that is, an explanation that can be understood by the “man on the street.”) (2) What does the negative slope of an indifference curve imply about a consumer’s tastes for the two goods? How would this change if one of the goods wasn’t a “good” at all (but instead a “bad”…something people do not like)? (3)...
Quantitative Question 2 Consider a situation where a consumer demands two goods, x and z with...
Quantitative Question 2 Consider a situation where a consumer demands two goods, x and z with the utility function U¯ = x 0.2 z 0.8 (a) Derive the marginal rate of substitution (b) Derive the demand functions for x and z as a function of income (Y ), the price of good x, (px) and the price of good z (pz) (c) Let Y = 200, px = 4, and pz = 8. Find the equilibrium quantities demanded for this...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT