In a constrained minimization problem, P = $500, PB = $100, MB = 50, and MB = 60. If one unit of A is taken away, how many units of B must be added to keep total benefits constant?
a. If one unit of A is taken away, how many units of B must be added to keep total benefits constant?
b. By how much is total cost reduced by the substitution in part a?
c. If the substitution in part a continues until equilibrium is reached, what will be the equilibrium relation between MB and MB?