Business
Business, 11.01.2020 01:31, zitterkoph

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/n

that 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?

answer
Answers: 2

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Assume that jim is a rational consumer who consumes only two goods, apples (a) and nuts (n). assume...

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