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Given that the price of Bread (PB) is $1.0. and the price of a cup of milk (PM)

ID: 2506151 • Letter: G

Question

Given that the price of Bread (PB) is $1.0. and the price of a cup of milk (PM) is $2.0 and the income available for this consumer is $ 20.0 Draw and completely label your budget constraint. Label this Graph A. Given the information about prices and income in section (B). How much of each good is consumed at the equilibrium? Show this combination on Graph A, labeling it point X. (Hint: just apply the two conditions of consumer equilibrium) Given the following situation, answer each of the following questions, Fill the spaces in the above table, i.e. calculate the marginal utility per $ for both goods. Suppose you have the following table of cost for a given firm, Fill the spaces in the above table At which time frame the firm operates in, short run or long run, why?

Explanation / Answer


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