A consumer is currently purchasing three pairs of Jeans and five t-shirts per year. The price of jeans is $30 and the price of the t-shirts $10.00. At the current rate of consumption, the marginal utility of Jeans is 60 and the marginal utility of the t-shirt is 30. Is the consumer maximizing his utility. Would you advise him to buy more Jeans or more t-shirts? Use the formula for utility maximization to explain your answer.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “A consumer is currently purchasing three pairs of Jeans and five t-shirts per year. The price of jeans is $30 and the price of the t-shirts ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
In the long run, an increase in the saving rate Group of answer choices doesn't change the level of productivity or income. raises the levels of both productivity and income. raises the level of productivity but not the level of income.
Answers (1)
Miss Kehinde, a kindergarten teacher, attends conferences, reads professional journals and is starting an advanced degree in early childhood education. Her actions are an example of a teacher who is
Answers (1)
How many elective courses does a college studebt typically have to take to earn a bachelors degree
Answers (1)
Accounts Receivable has a balance of $5,000 , and the Allowance for Bad Debts has a credit balance of $420. The allowance method is used. What is the net realizable value of Accounts Receivable after a $140 account receivable is written off?
Answers (1)
A mixed economy is one in which: a. resources are both publicly and privately owned and some markets are regulated. b. decisions are based primarily on religion or custom. c.
Answers (1)
New Questions in Business
A letter of credit: a. Ensures a company that funds will be available when needed b. Is analogous to a credit card that companies can draw on as needed c. Is a representation that a company has a high credit rating d.
Answers (1)
In a business organization, the splitting of management and ownership into two distinct functions is an example of a (n)
Answers (1)
Alan Jackson invests $20,000 at 8% annual interest, leaving the money invested without withdrawing any of the interest for 8 years. At the end of the 8 years, Alan withdraws the accumulated amount of money.
Answers (1)
Will Jones, LLP is a small CPA firm that focuses primarily on preparing tax returns for small businesses. The company pays a $500 annual fee plus $10 per tax return for a license to use Mega Tax software.
Answers (1)
Which strategy is most likely to improve most people's financial situation over a lifetime? A. using a credit to spend more than a person. B. making financial decisions quickly based on intuition. C.
Answers (1)