Andy spends all her income on cars (C) and boats (B). Cars cost $20,000, while boats...
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Andy spends all her income on cars (C) and boats (B). Cars cost $20,000, while boats costs $10,0000. Assume that Andy has $300,000 to spend and her utility function can be represented as U(C,B)=C³B² (Note: B is on the y-axis) What is her MRS? Andy spends all her income on cars (C) and boats (B). Cars cost $20,000, while boats costs $10,0000. Assume that Andy has $300,000 to spend and her utility function can be represented as U(C,B)=C³B² (Note: B is on the y-axis) What is her MRS?
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Andys utility function is given as UC B C3 B2 Find the MRS we first need to ... View the full answer
Related Book For
Microeconomics An Intuitive Approach with Calculus
ISBN: 978-0538453257
1st edition
Authors: Thomas Nechyba
Posted Date:
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