June consumes movie tickets (M) and concert tickets (C). Her utility function isU(M, C) = 5M^2 + 0.5C^2.
Write an equation for the Marginal Rate of Substitution (MRS).
Do you think this MRS is realistic? Would you trade an additional C for M at this rate?
Would bundles (M = 4, C = 1) and (M = 2, C = 2) lie on the same indifference curve? Prove your answer.
Does Mary have convex preferences? Why or why not?
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