Question
The net benefit is =2+2+^2^2 N=2x+2y+xyx^2y^2 1. Calculate the marginal net benefit of y as y increases from zero to one while x is held
The net benefit is
=2+2+^2^2
N=2x+2y+xyx^2y^2
1. Calculate the marginal net benefit of y as y increases from zero to one while x is held fixed at zero.
2. Make the same calculation as above, except with x fixed at one.
3. Combining this calculation with the one we made in Handout 3, what do we conclude about the variables x and y?
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Microeconomics
Authors: Douglas Bernheim, Michael Whinston
2nd edition
73375853, 978-0073375854
