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Charlie's utility function is U(x,y)=xy 2 . What is his marginalrate of substitution? a.None of the choices are correct. b.2y/x c.y 2 /x d.y/(2x) Martin
Charlie's utility function is U(x,y)=xy2. What is his marginalrate of substitution?
a.None of the choices are correct.
b.2y/x
c.y2/x
d.y/(2x)
Martin consumes only two goods--soda (S)and pizza (P)--and always in the same proportion of 1 pizza and 2 sodas. Martin's income is $30, the price of soda is $1 and the price of pizza is $4. What is Martin's optimal consumption bundle (S*,P*)?
a.(8,4)
b.(5,10)
c.(4,8)
d.(10.5)
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