Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Microeconomics Expert

Explain about the optimal consumption rule.

The optimal consumption rule:

While a consumer maximizes utility, the marginal utility per dollar spent should be similar for all goods and services into the consumption bundle.

MUC/PC = MUP/PP

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M9581649

Have any Question?


Related Questions in Microeconomics

Quesiton requires calculus in the model of a dominant firm

Quesiton: (Requires calculus) In the model of a dominant firm, assume that the fringe supply curve is given by Q = -1 + 0.2P, where P is market price and Q is output. Demand is given by Q = 11 - P. What will price and ou ...

Question describe how the world has changed in terms of

Question: Describe how the world has changed in terms of global trade in the past 10 years. Based on the assigned readings, what do you think developed countries such as the United States, Japan, Germany, and England wil ...

Question an economy has a saving rate of s 08 a

Question: An economy has a saving rate of s= .08, a depreciation rate of .02, a population growth rate of n= .03, and a growth rate of effective labor of g= .05. a. the capital-output ratio, k/y, for this economy is: b. ...

Question the cities of peabody and woburn are five miles

Question: The cities of Peabody and Woburn are five miles apart. Woburn enacts a rent control law that puts a ceiling on rents well below their competitive market value. Predict the effect of this law on the competitive ...

Question assume that workers whose incomes are less than

Question: Assume that workers whose incomes are less than $10,000 currently pay no federal income taxes. Suppose a new government program guarantees each worker $5000, whether or not he or she earns any income. For all e ...

Question 1 suggest two regulations that the reserve bank of

Question: 1. Suggest two regulations that the Reserve Bank of New Zealand could introduce to reduce the risk of asset price bubbles in the future. 2. Write a note on the prospects for economic growth in New Zealand for t ...

Question in your own words but with accuracy state and

Question: In your own words but with accuracy, state and explain the second version of Kant's Categorical Imperative. Give an example and explain whether it accord with this imperative or not. The response must be typed, ...

Question suppose financial innovations reduce the interest

Question: Suppose financial innovations reduce the interest rate differential at a given level of output. How, if at all, does this development affect output, Y, and the saving real interest rate rs ? How does it affect ...

Question what is the difference between delegate

Question: What is the difference between delegate representation and trustee representation? How did the difference lead to American Revolution? The response must be typed, single spaced, must be in times new roman font ...

Question 1 can it ever be the case that third degree price

Question: (1) Can it ever be the case that third degree price discrimination increases social welfare? If so, present an example to illustrate. If not, explain why. (2) Use the context of the durable goods monopoly probl ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As