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Suppose Goods X and Y Are Produced Along a Production X2500X2\frac { - X } { 2 \sqrt { 500 - X ^ { 2 } } }

Question 2

Multiple Choice

Suppose goods X and Y are produced along a production possibilities frontier 4X2 + Y2 = 500 and they are perfect substitutes such that U = X + Y.The slope of the production possibilities frontier is X2500X2\frac { - X } { 2 \sqrt { 500 - X ^ { 2 } } } .What is this slope at the utility-maximizing point?


A) 0
B) -1
C) -4
D) -5

Correct Answer:

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