Essay
Abby's utility function is given by U = X2Y2. For this utility function, MUx = 2XY2 and MUy = 2X2Y. If good X costs $10 and good Y costs $5, what share of Abby's utility-maximizing bundle is made up of good X?
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The marginal rate of substitution (MRS) ...View Answer
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Correct Answer:
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The marginal rate of substitution (MRS) ...
View Answer
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