1. Business
  2. Economics
  3. 9 consider the following utility function u xh the...

Question: 9 consider the following utility function u xh the...

Question details

9. Consider the following utility function: U = x[h. The consumer has income of M, the price of is P, and the price of r2 is F, (a) What is the marginal rate of substitution? (b) What is the equation for the budget constraint? (c) what is the optinal consumption bundle if M = 60, P = l and P-2? What level of utility is achieved?

Solution by an expert tutor
Blurred Solution
This question has been solved
Subscribe to see this solution