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Rina8888 [55]
1 year ago
5

Julio receives utility from consuming food​ (F) and clothing​ (C) as given by the utility function . In​ addition, the price of

food is ​$3 per​ unit, the price of clothing is ​$8
per​ unit, and​ Julio's weekly income is​ $50.
Part 2
What is​ Julio's marginal rate of substitution of food for clothing when utility is​ maximized? Explain.
Part 3
​Julio's marginal rate of substitution equals
Business
1 answer:
AleksandrR [38]1 year ago
6 0

​Julio's marginal rate of substitution equals is: 0.38, which is the price of food divided by the price of clothing.

<h3>Marginal rate of substitution</h3>

Using this formula

Marginal rate of substitution=Price of food/Price of clothing

Let plug in the formula

Marginal rate of substitution=$3 per unit/$8 per unit

Marginal rate of substitution=0.375

Marginal rate of substitution=0.38 (Approximately)

Therefore ​Julio's marginal rate of substitution equals is: 0.38, which is the price of food divided by the price of clothing.

Learn more about  marginal rate of substitution here:brainly.com/question/13401044

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Holding all other things constant, if the expected unit sales increase, then the markup under absorption costing will It increases 11.11% to 20% by the increase in units.

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2 years ago
You want to buy a new sports coupe for $75,500, and the finance office at the dealership has quoted you a 7.9 percent APR loan f
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Answer:

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Explanation:

To find the answer, we will use the present value of an annuity formula:

PV = A ( 1 - (1 + i)^-n) / i

Where:

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  • A = Value of the Annuity (which will be our incognita)
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Now, we convert the 7.9 APR to a monthly rate. The result is a 0.6% monthly rate.

Finally, we plug the amounts into the formula, and solve:

75,500 = A (1 - (1 + 0.006)^-72) / 0.006

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75,500 / 58.3 = A

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