Refer to the budget line shown in the diagram. If the consumer's money income is $40, the Multiple Choice prices of C and D cannot be determined. price of C is $5 and the price of D is $10. consumer can obtain a combination of 5 units of both C and D. price of C is $8 and the price of D is $4.
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Secondly, the slope of the budget line is determined by the ratio of the prices of the two goods. Thirdly, the intercepts of the budget line on the axes represent the maximum amount of each good that the consumer can afford if he spends all his income on that Show more…
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A consumer consumes only two goods X and Y. His money income is Rs 200 and the prices of goods X and Y are Rs 40 and Rs 20 respectively. a) Write two combinations of X and Y which lie on the budget line. b) Write two such combinations of X and Y which is part of his budget set but do not lie on his budget line. c) What is the equation of budget line and its slope? d) Can a consumer afford a bundle 4X and 5Y? Explain. e) What will be the MRS when the consumer is in equilibrium? Explain.
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Cost and Revenue For a certain product, cost $C$ and revenue $R$ are given as follows, where $x$ is the number of units sold (in hundreds) $$ \begin{array}{l}{\text { Cost: } C^{2}=x^{2}+100 \sqrt{x}+50} \\ {\text { Revenue: } 900(x-5)^{2}+25 R^{2}=22,500}\end{array} $$ a. Find and interpret the marginal cost $d C / d x$ at $x=5$ b. Find and interpret the marginal revenue $d R / d x$ at $x=5$
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