Utility Curve

Related BrainMass Solutions

• Budget Constraint/Indifference Curve

  43529 Budget Constraint/Indifference Curve At commodity bundle A, which consists of only apples and oranges, Annette's marginal utility per dollar spent on apples is 10 and her marginal utility per dollar spent on oranges is 8.

• Finding the optimal consumption bundle

  curve with utility =10 x1+2x2=12 Two points on the this curve will be (0,6) and (12,0) Now draw indifference curve with utility =20 x1+2x2=12 Two points on the curve will be (0,10) and (20,0) Customer will maximize utility subject to his

• Indifference Curves and budget lines

  One indifference curve represents one level of marginal utility. Thus anywhere on the indifference curve you will get the same level of marginal utility. Also more away the indifference curve is from the origin higher is your marginal utility.

• Indifference Curve, Budget Line & Optimal Utility

  424595 Indifference Curve, Budget Line & Optimal Utility A household's utility over two consumption goods x and y is U= U(x,y) = xy. 1.

• Indifference Curves, Utility Maximizing Conditions, and Demand Curves

  Utility maximizing points correspond to tangency of the highest possible Indifference Curve with the Consumer's budget line. Consumer optimum is the same as Utility maximizing.

• maximize utility

  This will give you total utility 262, the highest utility possible with $26. I also attach an excel file which gives more details. answer to 2: The MC curve for each firm combined together is the supply curve of a perfectly competitive industry.

• Cardinal & Ordinal Measurement & Cardinal Approach

  
  
  With Indifference curve analysis, it is not possible to compare utility between individuals, or find the total utility for society as the economist hoped to do.

• Kinked Utility / Indifference Curve

  This will result in a kinked utility curve. The expert will show how to graph and calculate a kinked indifference curve.

• Solving Utility Maximization Problems

  With T on the vertical axis and B on the horizontal axis, graph Sam's indifference curve for U = 4 This is a standard question of leontief utility function, or perfect complement utility function.