Problem
In Exercise 4.14, we discussed Latanya's preferences for telephone conversation. According to our assumption, we can represent her preferences with the utility function U(B,J) 18B 20J, where B and J are minutes of conversation per month with Bill and Jackie, respectively. What is Latanya's implied marginal utility of speaking with Bill? What is her implied marginal utility of speaking with Jackie? What is her MRS for minutes talking to Bill with minutes talking to Jackie?
Exercise 4.14
Latanya likes to talk on the telephone. We can represent her preferences with the utility function U(B, J) 18B 20J, where B and J are minutes of conversation per month with Bill and Jackie, respectively. If Latanya plans to use the phone for one hour to talk with only one person, with whom would she rather speak? Why? What is the formula for her indifference curves? Plot a few of those curves.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.