Question
Suppose that there are only two goods in the market, X and Y, and your utility function is given by U(X,Y) = XY. If the
Suppose that there are only two goods in the market, X and Y, and your utility function is given by U(X,Y) = XY. If the price of good X is $5 per unit, and the price of good Y is $10 per unit, what will be the value of the marginal rate of substitution of X for Y (MRS) when the utility is maximized?
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Microeconomics and Behavior
Authors: Robert Frank
9th edition
9780077723750, 78021693, 77723759, 978-0078021695
