This is due Monday. I am not sure I am doing it correctly. Can someone help me out?
Question:
Assume that Jim is a rational customer who consumes only two goods, apples(A) and nuts(N). Assume also, that his marginal rate of substitution (MRS) of nuts for apples is given by the following formula:
MRS=MU(a)/MU(n)=N/A
That is, Jim's MRS is simply equal to the ratio of the number of apples consumed to the number of nuts consumed. Jim's income is $200,the price of nuts is $10/lb, and the price of apples is $5/lb.
Calculate the quantities of apples and nuts Jim will consume.
I appreciate the help!
Im a bit confused, could you check to see if you have the problem copied correctly.
You have MRS=MU(a)/MU(n) = N/A
It would make more sense if the equation was: MRS=MU(a)/MU(n) = A/N
In which case, utility is maximized when MRS = slope of the budget constraint which is 2A/N or simply 2.
He consumes 20 apples and 10 nuts.
never mind my first statement; your original formula was (probably) copied correctly.
But the final answer still holds true: Utility is maximized whe the MRS=slope of the busget constraint, which happens at 20A and 10N
microeconomics is cool
The problem is copied correctly. thanks for your help!
I have 30 short question to be answered plus 30 multiple choice question to be completed can someone help! I will pay you.....
You plan to go skiing next weekend. If you do, you’ll have to miss your usual weekend job that pays $100. You won’t be able to study for 8 hours and you won’t be able to use your prepaid college meal plan. The cost of your travel and accommodations will be $350, the cost of renting skis is $60, and your food will cost $40. What is the opportunity cost of the weekend ski trip?
Your opportunity cost is the cost of the next best alternative you are forgoing to go skiing. In this case that is work and studying.
The trip costs $350 + $60 for skiis + $40 for food. The trip will cost a total of $450.
Your opportunity cost is $450 plus what you lose from not staying home. So your opportunity cost is $550 + (not given $ values in question) value that 8 hours of studying has to you + cost of the meals you miss.
Hope this helps
To calculate the opportunity cost of the weekend ski trip, we need to consider the value of the next best alternative you are giving up, which is your usual weekend job.
The opportunity cost of the ski trip is the value of your lost earnings from the job. In this case, the cost of missing your usual weekend job is $100.
Therefore, the opportunity cost of the weekend ski trip is $100.
To calculate the opportunity cost of the weekend ski trip, we need to consider the value of the next best alternative that you are giving up. In this case, the next best alternative is your usual weekend job that pays $100.
In addition to the missed job, there are other costs associated with the ski trip that should be considered:
1. The study time that you won't be able to use. Let's assume the value of your time spent studying is $15 per hour (just as an example). Since you won't be able to study for 8 hours, this would be a cost of $15 x 8 = $120.
2. The prepaid college meal plan that you won't be able to use. If the cost of the plan is, for example, $10 per meal, and you would have had two meals during that time, that would be a cost of $10 x 2 = $20.
Now let's add up the costs:
Opportunity cost = Value of missed job + Cost of missed study time + Cost of missed meal plan
Opportunity cost = $100 + $120 + $20
Opportunity cost = $240
So, the opportunity cost of the weekend ski trip is $240.