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Andy spends all her income on cars (C) and boats (B). Cars cost $20,000, while boats costs $10,0000. Assume that Andy has $300,000 to
Andy spends all her income on cars (C) and boats (B). Cars cost $20,000, while boats costs $10,0000. Assume that Andy has $300,000 to spend and her utility function can be represented as U(C,B)=CB (Note: B is on the y-axis) What is her MRS?
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Andys utility function is given as UC B C3 B2 Find the MRS we first need to ...
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Microeconomics An Intuitive Approach with Calculus
Authors: Thomas Nechyba
1st edition
538453257, 978-0538453257
