Teddy Has Preferences Given by the Utility Function U(K,L)= 2L

question 126

Essay

Teddy has preferences given by the utility function U(K,L)= 2L + K where K = pounds of Kale per month and L = pounds of lettuce per month.What is Teddy's Marginal Utility of Kale? What is Teddy's Marginal Utility from Lettuce? If Kale is on the horizontal axis,what is Teddy's marginal Rate of Substitution?

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Definitions:

Net Income

The total revenue of a business minus total expenses, indicating the company's profit after all expense deductions.

Income Statement

A financial statement that reports a company's revenues and expenses over a specific period, showing the net profit or loss.

Adjustments Column

Part of an accounting worksheet where entries are made to update account balances before preparing financial statements.

Retained Earnings

The portion of a company's profits that is kept or retained and not paid out as dividends to shareholders. Often reinvested in the business or used to pay off debt.