Question
5. Suppose the following Lagrangian is formed to maximize a consumer's utility subject to her budget constraint: = U(X,Y) + l(1,000 50X 5Y). The first-order
5. Suppose the following Lagrangian is formed to maximize a consumer's utility subject to her budget constraint: = U(X,Y) + l(1,000 50X 5Y). The first-order conditions for this problem imply:
A.MRS = 10.
B.PX / PY = 10.
C.(U/X) / (U/Y) = 10.
D.All of the statements associated with this question are correct.
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The Great Convergence Information Technology And The New Globalization
Authors: Richard Baldwin
1st Edition
067466048X, 9780674660489
