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    Microeconomics Theory and Applications
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    Exam 3: A Consumers Constrained Choice
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    Paul Has the Utility Function U(q₁,q₂)= Q₁q₂
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Paul Has the Utility Function U(q₁,q₂)= Q₁q₂

Question 27

Question 27

Multiple Choice

Paul has the utility function U(q₁,q₂) = q₁q₂.If Paul consumes q₁ = 4 and q₂ = 2 his Marginal Rate of Substitution is


A) -2.
B) 1.
C) -1.
D) ₋₁/₂.

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