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Mark's Utility Function Over Dance Show Tickets (D) and Baseball

question 67

Essay

Mark's utility function over dance show tickets (D) and baseball game tickets (B) can be expressed as U(D,B) = D + 5B.
a. What is his marginal utility of dance tickets?
b. What is his marginal utility of baseball tickets?
c. What is his marginal rate of substitution MRSDB?


Definitions:

Total Cost

The entire cost of production for a business, including both fixed (unchanging with output) and variable (changing with output) expenses.

Long-Run

A period in economics during which all factors of production and costs are variable, allowing all inputs to be adjusted to change the level of output.

Maximize Profits

The strategy or process aimed at making the highest possible profit from business operations.

Total Cost

The entire cost of production, including both fixed and variable costs.

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