Essay
Suppose that Defne's MUX = Y2 and MUY = 2XY. The price of good X is $10 and the price of good Y is $2. If Defne is consuming 8 units of good X and 16 units of good Y, is she maximizing utility? Explain your answer.
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To maximize utility, MRSXY = PX/PY. The MRS ...View Answer
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