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.
a. Assume that Jim’s income is $100, the price of nuts is $5, and the price of apples is $10.What quantities of apples and nuts will he consume?
b. Find two additional points on his demand curve for nuts (PN = $10 and PN = $2).
c. Sketch one of the equilibrium

Your mother's well-diversified portfolio has an expected return of 12.0% and a beta of 1.20. she is in the process of buying 100 shares of safety corp. at $10 a share and adding it to her portfolio. safety has an expected return of 15.0% and a beta of 2.00. the total value of your current portfolio is $9,000. what will the expected return and beta on the portfolio be after the purchase of the safety stock?

Seattle bank’s start-up division establishes new branch banks. each branch opens with three tellers. total teller cost per branch is $96,000 per year. the three tellers combined can process up to 90,000 customer transactions per year. if a branch does not attain a volume of at least 60,000 transactions during its first year of operations, it is closed. if the demand for services exceeds 90,000 transactions, an additional teller is hired and the branch is transferred from the start-up division to regular operations. required what is the relevant range of activity for new branch banks

Which curve shows increasing opportunity cost as you give up more of one option? demand curve bow-shaped curve yield curve indifference curve