A a consumer has a utility function donuts a and peaches b


a) A consumer has a utility function, donuts (A) and peaches (B) given by u(A,B) = square root AB

 

b) What is the maximum amount peaches she would be willing to give up for one additional unit of donuts, estimate the marginal rate of substitution of peaches for donuts?

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Business Economics: A a consumer has a utility function donuts a and peaches b
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