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(20 points) Let (x1, x2) be some interior bundle on the budget constraint, and supposep1= 4 andp2= 2. If the marginal rate of substitution at
- (20 points) Let (x1, x2) be some interior bundle on the budget constraint, and supposep1= 4 andp2= 2. If the marginal rate of substitution at (x1, x2) is -3, then is (x1, x2) optimal? Explain why or why not, and justify your answer with economic intuition. (Partial credit for a purely graphical argument.)
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Essentials Of Business Law
Authors: Jeffrey F Beatty, Susan S Samuelson
3rd Edition
0324537123, 9780324537123
