6. ADVANCED ANALYSIS Let MU A 5 z 5 10 2 x and MU B 5 z

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6. ADVANCED ANALYSIS Let MU A 5 z 5 10 2 x and MU B 5 z 5 21 2 2y , where z is marginal utility per dollar measured in utils, x is the amount spent on product A, and y is the amount spent on product B. Assume that the consumer has $10 to spend on A and B—that is, x 1 y 5 10.

How is the $10 best allocated between A and B? How much utility will the marginal dollar yield? LO3

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Economics Principles Problems And Policies

ISBN: 9780073511443

19th Edition

Authors: Campbell Mcconnell ,Stanley Brue ,Sean Flynn

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