Question
Let us say your preference of good X and good Y is represented by the Utility function U(X,Y) = 10X3Y2,where X measures the number of
Let us say your preference of good X and good Y is represented by the Utility function U(X,Y) = 10X3Y2,where X measures the
number of good X consumed and Y the number of good Y consumed.
a)Do you believe that more is better foreach good?[6 marks]
b)Do you have a diminishing marginalutility of good X and good Y?[6 marks]
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Managerial Economics and Organizational Architecture
Authors: James Brickley, Jerold Zimmerman, Clifford W. Smith Jr
5th edition
73375829, 978-0073375823
