Individuals Derive Utility from Picnics,p,and Kayak Trips,k

question 25

Multiple Choice

Individuals derive utility from picnics,p,and kayak trips,k.Assuming that an individual's utility is U(p,k) = k^0.5p^0.5 and income is $100,what is the marginal rate of substitution (MRS) between picnics and kayak trips?

• A) MRS = 1.
• B) MRS = -1.
• C) MRS = -
• D) There is no substitution because picnics and kayak trips are perfect complements.

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Definitions:

Promotional Mix

The combination of marketing strategies and tactics used by a company to promote its products or services, including advertising, sales promotions, public relations, and direct marketing.

Inspiration

The process of being mentally stimulated to do or feel something, especially to do something creative or achieve goals.

Observation

A method of collecting data and insights by carefully monitoring behaviors or phenomena in natural or controlled environments.

Idea

A thought or suggestion as to a possible course of action, plan, or concept.