2009ps2 - BUAD 351 Economic Analysis for Business Decisions...

Info icon This preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
BUAD 351 - Economic Analysis for Business Decisions Homework 2 due: Thu 02/12/2009 PART (i): multiple choice please provide the answers in the following box: question answer 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 1. A marginal rate of substitution formula tells us a. The rate at which the consumer is willing to exchange one good for another, given the level of utility b. The rate at which the consumer is willing to exchange one good for another, given the amounts consumed c. The rate at which the consumer is willing to exchange one good for another, given the consumer°s income d. The rate at which the consumer is willing to exchange one good for another, given the prices of the goods 2. Let Tom°s utility function be U ( C; M ) = C + 3 p M , where C is liters of Coke and M is liters of Mountain Dew. Compute Tom°s utility if he consumes 8 liters of Coke and 9 liters of Mountain Dew. 3. Teresa consumes both steak and lobster. Suppose the formula for her indi/erence curves is S = U ° 1 : 5 L , where S stands for the number of steaks, L stands for the number of lobsters and U represents utility. Which of the following bundles would Teresa prefer? 1
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern