Yes, the corner solution is best because his MRS is less than the price ratio.
Bill uses his entire budget to purchase Pepsi and hamburgers, and he currently purchases no Pepsi and 6 hamburgers per week. The price of Pepsi is $1 per can, the price of a hamburger is $2, Bill's marginal utility from Pepsi is 2, and his marginal utility from hamburgers is 6. Is Bill's current consumption decision optimal? T/F
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Yes, the corner solution is best because his MRS is less than the price ratio. Bill uses his entire budget to purchase Pepsi and ...” in 📘 Mathematics 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
The largest exponent of a polynomial determines the what?
Answers (1)
The perimeter of a rectangle of 150 feet. The length of the rectangle is twice the width. Find the length and width of the rectangle
Answers (1)
If i started at 11:40 A. M. And my elapsed time was 5 hours and 20 minutes. What is my end time?
Answers (1)
George's dog has a mass of 6 kg what is the mass of the dog in grams
Answers (1)
Elena buys a rectangular laundry hamper that has a volume of 2 13/18 cubic feet. The hamper is 2 feet long and 1 1/6 feet high. What is the width?
Answers (1)
New Questions in Mathematics
What is (4.8x10^2) (6.47x10^-4)
Answers (1)
Solve the equation. Enter the answer in radical form, and then use a calculator to approximate the solution to two decimal places, if necessary. (x + 5.6) 2 = 1.75
Answers (2)
Enrique takes out a student loan to pay for his college tuition this year. Find the interest on the loan if he borrowed $2,500 at an annual interest rate of 6% for 15 years. (Show all work!)
Answers (1)
An accountant gets paid $150 for each tax return she prepares, and her goal is to earn $6750 preparing tax returns during this tax season.
Answers (1)
A gerbil eats about 1/4oz of food per day. About how many pounds of food can a gerbil eat in a year?
Answers (1)