Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Business Economics Expert

Optimal bundles of goods

For each of the following situations, decide whether the bundle Lakshani is thinking about consuming is optimal or not. If it is not optimal, how could Lakshani improve her overall level of utility? That is, determine which good she should spend more on and which good should she spend less on.

a. Lakshani has $200 to spend on sneakers and sweaters. Sneakers cost $50 per pair, and sweaters cost $20 each. She is thinking about buying 2 pairs of sneakers and 5 sweaters. She tells her friend that the additional utility she would get from the second pair of sneakers is the same as the additional utility she would get from the fifth sweater.

b. Lakshani has $5 to spend on pens and pencils. Each pen costs $0.50 and each pencil costs $0.10. She is thinking about buying 6 pens and 20 pencils. The last pen would add five times as much to her total utility as the last pencil.

c. Lakshani has $50 per season to spend on tickets to football games and tickets to soccer games. Each football ticket costs $10 and each soccer ticket costs $5. She is thinking about buying 3 football tickets and 2 soccer tickets. Her marginal utility from the third football ticket is twice as much as her marginal utility from the second soccer ticket.

 

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M927984
  • Price:- $18

Guranteed 24 Hours Delivery, In Price:- $18

Have any Question? 


Related Questions in Business Economics

Since macro-environmental forces apply to almost every

Since macro-environmental forces apply to almost every industry simultaneously, which force do you think is having the most dramatic and overarching effect on the organization in which you currently work? Provide a ratio ...

A firms current profits are 450000 these profits are

A firm's current profits are $450,000. These profits are expected to grow indefinitely at a constant annual rate of 3 percent. If the firm's opportunity cost of funds is 6 percent, determine the value of the firm: Instru ...

Ms b is 55 years old and is planning to retire at age 62

Ms. B is 55 years old and is planning to retire at age 62. She wants to have a retirement income from that point until age 85. She projects that she will need $5,000 per year during her retirement to supplement her other ...

Select a news article dated within the previous two months

Select a news article dated within the previous two months and analyze the issue using the economic concepts and theory learned in this class. Include at least one graph developed in our course. Please include link to th ...

Thrope inc purchased 1900 pounds of direct material at a

Thrope, Inc. purchased 1,900 pounds of direct material at a price of $1.30 per pound. The standard price of the material is $1.42 per pound. Thrope used 1,300 pounds in production while the standard pounds allowed for ac ...

Suppose that demand is d 10-2p where p is price a evaluate

Suppose that Demand is D = 10-2P, where P is price. (a) Evaluate the elasticity of demand at P = 2. (b) Evaluate the elasticity of Demand at P = 3. (c) Write the marginal revenue, evaluated at these two prices.

Mcos you are a new physician setting up your own practice

MCOs You are a new physician setting up your own practice in a new town. You are researching the different MCOs offered in your area and are considering becoming a physician for one of these networks. You have also invit ...

From california to new york legislative bodies across the

From California to New York, legislative bodies across the US are considering eliminating or reducing the surcharges that banks impose on non-customers who make $12 million in withdrawals from other banks’ ATMs. On avera ...

The united states with about 300 million people accounts

The United States, with about 300 million people, accounts for about 5% of the world population, but it accounts for over 20% of the world GDP and consumes over 20% of global resources. This means, on a per capita basis, ...

As a financial analyst you are tasked with evaluating a

As a financial analyst, you are tasked with evaluating a capital budgeting project. You were instructed to use the IRR method and you need to determine an appropriate hurdle rate. The risk-free rate is 4% and the expecte ...

  • 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

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate