Let mua z 10 - x and mub z 21 - 2y where z is marginal


Let MUa = z = 10 - x and MUb = z = 21 - 2y, where z is marginal utility per dollar measured in utils, x is the amount spent on productA, and y is the amount spent on product B. Assume that the consumer has $10 to spend on A and B--that is, x + y = 10. How is the $10 best allocared between A abd B? how much utility will the marginal dollar yield?

Request for Solution File

Ask an Expert for Answer!!
Other Subject: Let mua z 10 - x and mub z 21 - 2y where z is marginal
Reference No:- TGS0649929

Expected delivery within 24 Hours