1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Zarrin [17]
3 years ago
14

Casper consumes cocoa and cheese. Cocoa is sold in an unusual way. There is only one supplier, and the more cocoa you buy from h

im, the higher the price you have to pay per unit. In fact y units of cocoa will cost Casper y^2 dollars. Cheese is sold in the unusual way at a price of 2 dollars per unit. Casper's income is 20 dollars and his utility function is U(x,y) = x+2y, where x is his consumption of cheese and y is his consumption of cocoa.
a. Draw Casper's budget set and shade it in.
b. Draw some of his indifference curves and label the point that he chooses.
c. Calculate the amount of cheese and the amount of cocoa that Casper demands at these prices and this

Business
1 answer:
muminat3 years ago
8 0

Answer:

The graph has been attached.

Explanation:

a. Please see attached graph with the shaded budget set labelled A

b. Please see attached. Curve C; D and E are the indifference curves. The most suitable one would be D since it is on the budget curve. E is not maximum utility and C is unattainable given his budget of $20.

c.  U (X,Y) = X + 2Y

At C, Utility = 10 + 2(10) = $30. That is above his budget

At D, Utility = 10 + 2(5) = $20. This is within his budget. – most utility.

At E, Utility = 5 + 2(5) = $15. This is below his budget.  

The Indifference curve that gives most utility is D, where cheese is 10 and cocoa is 5 units.

You might be interested in
Classify the following topics as relating to microeconomics or macroeconomics. Topic: Microeconomics or Macroeconomics
goldenfox [79]

Answer: MICROECONOMICS

1.The effect of a change in price of one good on a related good.

MACROECONOMICS

2. The relationship between the inflation rate and the unemployment rate.

3.The effect of government subsidies on the agricultural industry.

Explanation: Microeconomics is a term of the to describe the impact of certain conditions on a single product or service,it doesn't consist of the whole economy or country.

Macroeconomics is a term used to describe the impact of certain conditions on the whole economy or country. Inflation rate, unemployment rate, effects of subsidy in Agriculture etc are all Macroeconomics statistics give better understanding of the economic performance.

8 0
3 years ago
Trader Joe's is an American chain of grocery stores headquartered in Monrovia, California. Trader Joe's creates a competitive ad
Goryan [66]

Answer:

Differentiation focus strategy

Explanation:

Competitive advantage is defined as the factors or strategy that gives a firm an edge over others in the same industry.

They are able to sell more product and make more profit than their competitors.

Trader Joe's creates a competitive advantage by its ability to incorporate upscale or attractive attributes into its product offerings at lower costs than rivals.

They are using differentiation focus strategy which entails developing a unique product based on selected attributes that are widely valued by customers.

Focus is given to making products that specifically meet these needs.

The result is a product that is unique in the industry. Products from Trader Joe's can't be found anywhere else. Also they provide a unique atmosphere and unique interaction with their staff.

They have been able to have reduced pricing through research and other tactics aimed at reducing cost of production in a sustainable manner.

4 0
3 years ago
Definition of collateral​
Romashka [77]
Collateral- Something pledged as security for repayment of a loan, to be forfeited in the event of a default.
8 0
3 years ago
Read 2 more answers
Cragmont has beginning equity of $277,000, net income of $63,000, withdrawals of $25,000 and no additional investments by owners
MatroZZZ [7]
The ending equity is $315,000 This is just a matter of adding income and subtracting withdraws. So let's do it. "Cragmont has beginning equity of $277,000," x = $277000 "net income of $63,000" x = $277000 + $63000 = $340000 "withdrawals of $25,000" x = $340000 - $25000 = $315000
3 0
3 years ago
Clam gulch is a very popular clamming beach in alaska. on good low tides, clammers can easily gather 60 clams (the state limit).
Ahat [919]

The way economists would probably explain the wastage of this clam resource is by saying that clams are free goods and are therefore subject to the tragedy of the commons effect. The tragedy of the commons effect is a theory in economics, postulated by the Victorian economist William Forster Lloyd.


The tragedy of the commons effect describes a condition within a shared-resource system where each user act freely according to their own self-interest, but their collective actions ends in the depletion or spoilage of that resource, thus having a negative impact on the common good of all users. In this case, commons is taken to refer to the clam resources.

6 0
3 years ago
Other questions:
  • At the adjourning stage of team development, the team members are most likely to:________
    5·2 answers
  • When comparing different forms of advertising, the property manager should realize that A) trade journals are ineffective for re
    8·1 answer
  • The Achilles' heel (or biggest disadvantage/pitfall) of relying heavily on alliances and cooperative strategies is
    15·1 answer
  • Mocha Company manufactures a single product by a continuous process, involving three production departments. The records indicat
    11·1 answer
  • What is an accurate definition of an ability?
    12·2 answers
  • Coc.k dsfdfdsfdsfdsfs
    12·2 answers
  • Donald's home was recently destroyed by a fire. He made an insurance claim for $250,000. Who is responsible for paying him the $
    8·1 answer
  • Artificial intelligence (A.I.) is a powerful tool for aiding human decision making. This activity is important because managers
    13·1 answer
  • The total of all accumulated and unpaid deficits a situation in which revenue exceeds outlays a situation in which outlays excee
    15·1 answer
  • Tactical managers are often referred to as _____ managers
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!