ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Given the following utility function:
and marginal rate of substitution:
A consumer facing the following prices:
chooses to consume:
U = 100X0.250.10
Given this consumption bundle, the marginal rate of substitution is equal to -
Given this value, the consumer should consume
MRS =
0.25Y
0.10X
Px = $10, P, =$10
20 units of good X and 16 units of good Y.
(Round your answer to two decimal places. Note that the minus sign is already included.).
in order to maximize his/her utility.
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Transcribed Image Text:Given the following utility function: and marginal rate of substitution: A consumer facing the following prices: chooses to consume: U = 100X0.250.10 Given this consumption bundle, the marginal rate of substitution is equal to - Given this value, the consumer should consume MRS = 0.25Y 0.10X Px = $10, P, =$10 20 units of good X and 16 units of good Y. (Round your answer to two decimal places. Note that the minus sign is already included.). in order to maximize his/her utility.
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