Diogo has a utility function U(B, Z) = AB Z , where A, , and

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Diogo has a utility function U(B, Z) = ABαZβ, where A, α, and β are constants, B is burritos, and Z is pizzas. If the price of burritos, pB, is $2 and the price of pizzas, pZ, is $1, and Y is $100, what is Diogo’s optimal bundle?

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Microeconomics

ISBN: 978-0134519531

8th edition

Authors: Jeffrey M. Perloff

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