Question: 6. Advanced Analysis Let MU = z = 10 - x and MUp = z =21 - 2y, where z is marginal utility per dollar

 6. Advanced Analysis Let MU = z = 10 - x

6. Advanced Analysis Let MU = z = 10 - x and MUp = z =21 - 2y, where z is marginal utility per dollar measured in utils, x is the amount spent on product A, 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 allocated between A and B? How much utility will the marginal dollar yield? [LO7.3]

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