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Faisal consumes only bread (X) and butter (Y) and has the following utility function: U = u( x, y) = x*y Let his income be
Faisal consumes only bread (X) and butter (Y) and has the following utility function: U = u( x, y) = x*y Let his income be 180. Hint: His Marginal Rate of Substitution is given by MRS = y/x. He faces prices of px = $6 and py = $4 and consumes 10 units of each good
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International Business
Authors: Michael Czinkota, Iikka A. Ronkainen, Michael H. Moffett
8th edition
470530658, 470530650, 978-0470530658
