Davids utility function is U = B + 2Z, so MU B = 1 and MU Z

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David’s utility function is U = B + 2Z, so MU_B = 1 and MU_Z = 2. Describe the location of his optimal bundle (if possible) in terms of the relative prices of B and Z.

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Microeconomics

ISBN: 978-0134519531

8th edition

Authors: Jeffrey M. Perloff

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Question Posted: Nov 12, 2018 06:15 AM

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Davids utility function is U = B + 2Z, so MU B = 1 and MU Z

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If we plot B on the vertical axis and Z on the horizont...View the full answer

Microeconomics

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