QUESTION 19 Researchers have investigated the preferences over dinner and they h

Question

QUESTION 19

Researchers have investigated the preferences over dinner and they have found that they take the following form:

U = - 37 Chicken + 51 Steak + 58 Fish - 66 Costs

Costs= cost in dollars of the dinner
Chicken= amount of chicken in pounds
Steak= amount of steak in pounds
Fish= amount of fish in pounds

Given this information, how many pounds of fish is the consumer willing to give up to obtain one more pound of steak during dinner? (hint: use MRS(steak, fish) but enter your answer as a positive number)

Explanation / Answer

U=- 37 Chicken + 51 Steak + 58 Fish - 66 Costs

MRS(steak, Fish)=51/58=.8793 pound of fish for obtaining one more pound steak

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