Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Microeconomics Expert

Economics


Home >> Microeconomics

Suppose that omar's marginal utility for cup of coffee is constant at 2.5 utils per cup no matter how many cup he drinks. on the other hand, his marginal utility per donut is 11 for the first donut he eats, 10 for the second he eats, 9 for the third he eats, and so on declining by one util per additional donut. in addition, suppose that coffee cost $1 per cup, donut cost $1 each, and omar has a budget that he can spend only on donuts, coffee, or both. How big will that budget have to be before he would spend a $1 buying a first cup of coffee?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M9742401

Have any Question?


Related Questions in Microeconomics

Question explaini what economic factors have been

Question: Explain (i) what economic factors have been responsible for China's economic performance in those 30 years to outperform most "Western" capitalist economies. 300 word (ii) Do you then conclude that Socialism wi ...

Question write a brief essay minimum 250 words on the

Question: Write a brief essay (minimum 250 words) on the following: You've read about the price elasticity of demand. Much as the price elasticity of demand applies to products, it can also be applied to individual brand ...

Question in france it takes one worker to produce one

Question: In France it takes one worker to produce one sweater, and one worker to produce one bottle of wine. In Tunisia it takes two workers to produce one sweater, and three workers to produce one bottle of wine. Who h ...

Question two firms share a building guards patrolling the

Question: Two firms share a building. Guards patrolling the building protect both the stores. The jewelrystore's demand curve for guards is strictly greater at all prices than that of the hat store. Themarginal cost of a ...

Question why do the authors of why ation ail place such

Question: Why do the authors of Why ation ail place such heavy emphasis on institutions as one of the most critical elements for the generation of prosperity among developing countries? What other factors do they also de ...

Question suppose that the banking system in the united

Question: Suppose that the banking system in the United States could be described by the following set of equations: Reserve requirement ratio (rr) = 0.09 Currency in circulation (C) = $565 billion Total Deposits (D) = $ ...

Question - in fall 2013 apple loaned its sapphire glass

Question - In fall 2013, Apple loaned its sapphire glass supplier $578 million to set up a manufacturing plant to produce the glass for the new iPhone 6. In November 2014, Apple's glass supplier lost the contract and pro ...

Question suppose the full-employment level of real gdp is

Question: Suppose the full-employment level of real GDP is increasing at a rate of 3% per period and the money supply is growing at a 4% rate. What will happen to the long-run inflation rate, assuming constant velocity? ...

Question an economy has the production function y a k03

Question: An economy has the production function Y = A (K^0.3) (L^0.7) where A = 1 and (L^0.7) = 10. The depreciation rate is 10% and the investment rate is 30% of output. a. Compute the steady state level of capital. b. ...

Question suppose there is a pure exchange economy with two

Question: Suppose there is a pure exchange economy with two goods, A and B. The utility function for consumer i is U(A,B) = A 1 0.5 B 1 0.5 . The utility function for consumer 2 is U(A,B) = A 2 0.25 B 2 0.75 . Consumer 1 ...

  • 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

Follow Us

© Copyright 2013-14 mywordsolution.com All rights reserved