Question

U(H, C) = 3H + 2C MU(H) = 3 MU(C) = 2

          U(H, C) = 3H + 2C
MU(H) = 3
MU(C) = 2
        

Added by Jennifer P.

Principles of Economics
Principles of Economics
Gregory Mankiw 8th Edition
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U(H, C) = 3H + 2C MU(H) = 3 MU(C) = 2
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Transcript

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00:02 The close michael purchases only two goods, hamburgers, h, and c.
00:07 A, what is the relationship between mrs, so marginal rate of substitution of h and c, and the marginal utilities, muh and muc? b, what is a typical indifference curve for the case in which the marginal utilities of both goods are positive and the marginal rate of substitution of hamburgers for coax is diminishing? explain the relationship between the indifference curve and the marginal rate of substitution of hamburgers for coax.
00:33 C.
00:34 Suppose a marginal rate of substitution of hamburgers for coax is constant.
00:38 In this case, are hamburgers and coke's perfect substitutes or perfect compliments? d.
00:44 Suppose that michael always wants two hamburgers along with every coke.
00:47 Draw typical indifference proof.
00:49 In this case, are hamburgers and coke's perfect substitutes or perfect compliments? so let's start with part a, which asked what is the relationship between the marginal rate of substitution of hamburgers and coax and the marginal utility? so the marginal utility of hamburgers and the marginal utility of coax.
01:13 And what we find is that the marginal rate of substitution, hamburgers and coax equals the utility of hamburgers over the utility of coax...
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