« previous next »

Author Question: Amos Long's marginal utility of income function is given as: MU(I) = I1.5, where I represents ... (Read 173 times)

Pineapplelove6

  • Hero Member
  • *****
  • Posts: 560
on: Jul 1, 2018
Amos Long's marginal utility of income function is given as: MU(I) = I1.5, where I represents income. From this you would say that he is
 
  A) risk averse.
  B) risk loving.
  C) risk neutral.
  D) none of the above

Question 2

Sue views hot dogs and hot dog buns as perfect complements in her consumption, and the corners of her indifference curves follow the 45-degree line.
 
  Suppose the price of hot dogs is 5 per package (8 hot dogs), the price of buns is 3 per package (8 hot dog buns), and Sue's budget is 48 per month. What is her optimal choice under this scenario? A) 8 packages of hot dogs and 6 packages of buns
  B) 8 packages of hot dogs and 8 packages of buns
  C) 6 packages of hot dogs and 6 packages of buns
  D) 6 packages of hot dogs and 8 packages of buns


ErinKing

  • Sr. Member
  • ****
  • Posts: 362
Reply #1 on: Jul 1, 2018
Answer to Question 1

B

Answer to Question 2

C


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Calcitonin is a naturally occurring hormone. In women who are at least 5 years beyond menopause, it slows bone loss and increases spinal bone density.

Did you know?

Only 12 hours after an egg cell is fertilized by a sperm cell, the egg cell starts to divide. As it continues to divide, it moves along the fallopian tube toward the uterus at about 1 inch per day.

Did you know?

Approximately 500,000 babies are born each year in the United States to teenage mothers.

Did you know?

The shortest mature adult human of whom there is independent evidence was Gul Mohammed in India. In 1990, he was measured in New Delhi and stood 22.5 inches tall.

Did you know?

About 3.2 billion people, nearly half the world population, are at risk for malaria. In 2015, there are about 214 million malaria cases and an estimated 438,000 malaria deaths.

Went and Briggs demonstrated the relationship between light perception and auxin function. Went and Briggs demonstrated the relationship between light perception and auxin function.
Associative Long-Term Potentiation Associative Long-Term Potentiation
On November 11, 1887, four anarchists were hanged in Chicago on charges that they had thrown a bomb On November 11, 1887, four anarchists were hanged in Chicago on charges that they had thrown a bomb
How to find the average value of a function (Part 2) How to find the average value of a function (Part 2)
A Structure/Function Label Claim A Structure/Function Label Claim
Differentiation of Inverse Trigonometric Function Differentiation of Inverse Trigonometric Function
Video: Summary of glucose catabolism

For a complete list of videos, visit our video library