Order the answer to: Natasha’s utility function is U(C,…
| Question | Natasha’s utility function is U(C, F) = (3 + F), where C stands for concert tickets and F stands for film tickets. Her income is $300 per month and concert tickets cost $5 each. What is the formula for Natasha’s MRSCF? Does it have the declining MRS property? Solve for and graph her price-consumption curve (allowing the price of film tickets, PF, to vary) and her demand curve for film tickets. For what values of PF is her best choice an interior solution? For what prices is it a boundary choice? |
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| Subject | business-economics |
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