Need help with this, correct answer is shown. All I need is how to arrive at the
ID: 1142705 • Letter: N
Question
Need help with this, correct answer is shown. All I need is how to arrive at the answer, please show work
Lorna consumes cans of anchovies, A, and boxes of biscuits, B. Each of her indifference curves reflects strictly diminishing marginal rates of substitution 12 Where A8 and B8 (point R), her marginal rate of substitution between cans of anchovies and boxes of biscuits equals 3.00 (MUA/MUB) Will she prefer a bundle with 5 can(s) of anchovies and 10 box(es) of biscuits (bundle T) to her current bundle? No CD Anchovies (A)Explanation / Answer
management decides not only what to produce and how to produce it but also how much
to charge for each item. Before you took your economics course, you probably gave very little
thought to where those prices on the menu came from. You look at the price again: €5 for an
order of fried chicken. Just as you were able to learn some things about the customer from
observing her decision, you realize that you can also learn something about KFC. You know
that KFC wouldn’t sell an order of fried chicken at that price unless it was able to make a
profit by doing so. For example, if a piece of raw chicken cost €6, then KFC would obviously
make a loss. So the price charged must be greater than the cost of producing the fried chicken.