(Answered) Sally the sleeks preferences can be described by the

Management Studies

Sally the Sleek's preferences can be described by the utility function U(x, y) = x2y3/512. Pricesare px = 2 and py = 6; she has an income of $80 to spend.

(a) If Sally initially consumed 4 units of x and 12 units of y, how much additional utility does sheget from spending one (small fraction of a) dollar more on good x? How much additional utility does she get from spending one (small fraction of a) dollar more on good y?

(b) By how much would her utility change if she stayed on the same budget and consumed 4("small") dollars worth more of x? Judging from this, can the allocation of x = 4 and y = 12be optimal?

View complete question

Business Management, Management Studies

Category:- Business Management
Reference No.:- M91978701
Price:- $15

Verified Expert

Priced at $30 Now at $15, Verified Solution

Have any Question?Write your Review or question?

Related Questions in Business Management

There is a psychopathic disorder checklist that an

There is a psychopathic disorder checklist that an organization is in accordance with. Explain the approach that a leader can use to change the characteristics within the organization. What kind of framework can be used ...

The board of directors has voted to add a new product line

The Board of Directors has voted to add a new product line. Casey's department will be directly responsible for implementing the changes. Casey identifies a project team to take the lead. Does Casey's project team have a ...

Find an example of conflict this leader dealt with and use

Find an example of conflict this Leader dealt with and use the course concepts to judge its results. Was this Leader an effective negotiator? Explain your answer using concepts from this chapter.

Explain how amazon and walmart companies use information

Explain how Amazon and Walmart companies use Information and Communication Technologies (ICT) in their competitive strategies. Highlight the differences in their use of ICT.

Why is it crucial to provide both proactive during the

Why is it crucial to provide both proactive during the implementation, and reactive after completing the implementation feedback to management?

An it manager claims that an intrusion detection system ids

An IT manager claims that an Intrusion Detection System (IDS) is all the company needs and therefore it should not purchase an Intrusion Prevention System (IPS). Do you agree?

What tasks might be performed by a tms package and value

What tasks might be performed by a TMS package and value does automating these tasks have?

What are performance standards and what is the difference

What are performance standards? And what is the difference between KPI's and a performance standard?

Many companies have codes of ethics to guide managers in

Many companies have codes of ethics to guide managers in their decision making. However, the evidence indicates that few people rely on a company code of ethics in their decision making. Are the codes valuable? Should co ...

You are saving up to buy a toyota tundra which costs 35000

You are saving up to buy a Toyota Tundra, which costs $35000 now. You don't think the price of the Toyota will change over the next two years. You don't want to borrow to pay any of this cost. You now have $10000 toward ...

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 Business Management Expert