Mathew has the utility function u vxy where y represents, Ask an Expert

Economics

Mathew has the utility function U =vXY (where Y represents apples and X represents hot dogs), income of $20, and is deciding how to allocate that income between apples ($1) and hot dogs ($1).

Mathew's utility function implies that the marginal utility of apples is 0.5vX/Y and the marginal utility of hotdogs is 0.5vY/X. How many apples and hotdogs will Mathew buy?

View complete question

Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M9743305

Have any Question?Write your Review or question?

Related Questions in Microeconomics

Question one study compared the performance of a single

Question: One study compared the performance of a single company's franchised and company-owned fast-food outlets on health inspections. It found that franchises received higher (i.e., better) average point scores on a s ...

Question define marginal cost and marginal benefit in new

Question: Define marginal cost and marginal benefit In New State, the bottling law requires that people get a refund of five cents when they return an empty bottle or can. Why does the state pay people to return bottles? ...

Question why does marginal analysis work ie allows a firm

Question: Why does marginal analysis work (i.e., allows a firm to determine the correct level to produce where it maximizes profits or minimizes losses)? The response must be typed, single spaced, must be in times new ro ...

Question a business equipment used for the manufacture of

Question: A business equipment used for the manufacture of commercial goods can be purchased for $30,000. This asset is expected to be sold after 4 years for $6,000. Compute the depreciation amounts every year (depreciat ...

Question how do you think the problem of moral hazard might

Question: How do you think the problem of moral hazard might have affected the safety of sports such as football and boxing when safety regulations started requiring that players wear more padding? The response must be t ...

Question there are three consumers a b and c consumer a is

Question: There are three consumers A, B and C. Consumer A is willing to pay 40-.25F dollars for a unit of flowers for the public square, B is willing to pay 75-.25F dollars for a unit of flowers, and C is willing to pay ...

Question imagine that there is an adverse supply shock draw

Question: Imagine that there is an adverse supply shock. Draw a graph depicting the adverse supply shock, and explain what it means for an economy (in terms of prices and output). The response must be typed, single space ...

Question danny dimes donahue is a neighborhoods 9-year-old

Question: Danny "Dimes" Donahue is a neighborhood's 9-year-old entrepreneur. His most recent venture is selling homemade brownies that he bakes himself. At a price of $2.5 each, he sells 250. At a price of $2 each, he se ...

Question - suppose that emergency room services in a city

Question - Suppose that emergency room services in a city are provided by three hospitals. Two of the hospitals each have a market share of 40% and the third hospital has a market share of 20%. Compute the pre-merger and ...

Question suppose that the substitution effect of an

Question: Suppose that the substitution effect of an increase in the wage is always larger than the income effect. Suppose the economy is on the low tax side of the Laffer curve. Determine the effect of increase in Total ...

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

Recent Questions

Ask Microeconomics Expert