
Microeconomics 2nd Edition by Douglas Bernheim
Edition 2ISBN: 978-0071287616
Microeconomics 2nd Edition by Douglas Bernheim
Edition 2ISBN: 978-0071287616 Exercise 3
Julia and Frank consume hamburgers ( H ) and salads ( S ). Julia's utility function is U ( H , S ) = 4 H 0.3 S 0.9 , and Frank's is U ( H , S ) = H 0.1 S 0.3. They have the same income and face the same prices. How do their purchases of hamburgers and salads compare
Explanation
Calculate the MRS of J's preferences. J'...
Microeconomics 2nd Edition by Douglas Bernheim
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