Ask Question
BusinessBusiness
16 October, 19:53

A consumer has $130 in monthly income to be spent on two goods Z and B. The price of good Z (Pz ) is $8.00. The Marginal Rate of Transformation (MRT) is equal to minus-2. That is 2 units of good B can be traded for 1 unit of good Z. What is the price of good B in $?

+4
Answers (1)
  1. 16 October, 20:05
    0
    Price of B is $4

    Explanation:

    Marginal rate of transformation is defined as the amount of a good x has to stop being produced inorder to produce a certain amount of a good y. Factors of production and technology used are assumed to be constant.

    In this scenario the marginal rate of transformation is - 2, that is 2 units of good B can be traded for 1 unit of good Z, mathematically

    2 * Pb = Pz

    Substitute price of Z

    2 * Pb = $8

    Pb = 8 : 2

    On = $4
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “A consumer has $130 in monthly income to be spent on two goods Z and B. The price of good Z (Pz ) is $8.00. The Marginal Rate of ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
On Dec. 31 The petty cash custodian performs the month-end reconciliation and totals the receipts as follows: Postage stamps used $58 Courier costs $73 Company lunch costs $61 Office decorations $30 $68 of cash remained on hand.
Answers (2)
Evan has received permission from his state to form a corporation for his startup, expecting his liability would be limited to the amount of his investment.
Answers (1)
Calculate the net income for jupiter inc. whose total revenue is $1,000,000, and total expenses, inclusive of taxes, is $500,000.
Answers (1)
A company has the following balances on December 31, 2018, after year-end adjustments: Accounts Receivable = $62,500; Allowance for Uncollectible Accounts = $6,200. Calculate the net realizable value of accounts receivable
Answers (1)
When a monopolist maximizes profit, its marginal cost will A. be less than its average fixed cost. B. be less than the price per unit of its product. C. exceed its marginal revenue. D. equal its average total cost.
Answers (1)
New Questions in Business
Sharp Focus Cameras is facing intense competitive pressure. Top marketing managers are looking for ways to cut costs. They are considering a plan to cut distribution costs by eliminating marketing intermediaries from the channel of distribution.
Answers (1)
Older adults who participated in 20 one-hour video game training sessions with the program lumosity showed reduction in their:
Answers (1)
The total of tools, equipment, machinery, and buildings used to produce goods and services is called supply. True or False
Answers (1)
What percentage of federal revenues is made up of corporate taxes
Answers (1)
F Rudy offers Oscar $200 for his laptop valued at $600 and Oscar agrees, a court will probably
Answers (1)
Home » Business » A consumer has $130 in monthly income to be spent on two goods Z and B. The price of good Z (Pz ) is $8.00. The Marginal Rate of Transformation (MRT) is equal to minus-2. That is 2 units of good B can be traded for 1 unit of good Z.
Sign Up Forgot Password?