If James has a utility curve characterized by the function of U = 2X 3 Y 2 , what is his marginal rate of substitution between goods X and Y?
What will be an ideal response?
To find the MRSs, take the partial derivative of the function with respect to X and divide it by
the partial derivative with respect to Y, which yields (3/2) * (Y/X).
Economics
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When the president of the Bank of America addresses Congress regarding lending standards in that industry, he is discussing
A) a macroeconomic topic. B) a microeconomic topic. C) incentives. D) the big tradeoff.
Economics
Assuming fixed factor prices, the short-run industry supply curve for a perfectly competitive industry is equal to the sum of the
A) AVC curves above minimum AVC. B) ATC curves above minimum ATC. C) MC curves above minimum AVC. D) MC curves above minimum ATC.
Economics