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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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