Create an Account

Already have account?

Forgot Your Password ?

Home / Questions / Assume that Jim is a rational consumer who consumes only two goods, apples (A) and nuts (N). Assume

Assume that Jim is a rational consumer who consumes only two goods, apples (A) and nuts (N). Assume

Assume that Jim is a rational consumer who consumes only two goods, apples (A) and nuts (N). Assume that his marginal rate of substitution of apples for nuts is given by the following formula.MRS=MUN/MUA=A/NThat is, Jim’s MRS is equal to the ratio of the number of apples consumed to the number of nuts consumed.Assume that Jim’s income is $100, the price of nuts is $5, and the price of apples is $10. What quantities if apples and nuts will he consume?

 

Apr 24 2020 View more View Less

Answer (Solved)

question Subscribe To Get Solution

Related Questions