Marie's Utility Function Is U(x, Y)= Min{3x + 2y, 2x

question 78

Essay

Marie's utility function is U(x, y)= min{3x + 2y, 2x + 5y}, where x is the number of units of sugar she consumes and y is the number of units of spice she consumes.She is currently consuming 12 units of sugar and 40 units of spice and she is spending all of her income.
a.Draw a graph showing her indifference curve through this point.
b.The price of spice is $1.In order for this to be her consumption bundle, what must the price of sugar be and what must her income be?

Apply the concept of marginal productivity in advising firms in competitive markets.

Understand how economic theories like the law of diminishing marginal returns influence labor and production decisions.

Understand how firms make optimal hiring decisions based on labor supply and capital use.

Grasp the concept of the value of the marginal product of labor.

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Definitions:

Data-Driven Story

A narrative or explanation informed and supported by data, emphasizing the importance of evidence in understanding a topic.

Infographics

Graphical visualizations that aim to simplify complex information into a digestible and visually engaging format.

Animation

The process of creating motion and shape change illusions by means of the rapid display of a sequence of static images that minimally differ from each other.

Gantt Chart

A type of bar chart that illustrates a project schedule, showing the start and finish dates of elements.