Question
Suppose your friend consumes two goods X, and Y so that the MU(x) is 5 times the MU(y). Could this be a Utility maximizing point?
Suppose your friend consumes two goods X, and Y so that the MU(x) is 5 times the MU(y). Could this be a Utility maximizing point?
A. No the MU(x) must equal the MU(y) to maximize utility.
B. It could be if the Px is one fifth (1/5) the Py.
C. It could be if Px is 5 times the Py.
D. It could be if I = Px + Py.
Why??
Thank you
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Labor Economics
Authors: George J. Borjas
6th edition
73523208, 2900073523209 , 978-0073523200
