Question: Consider the following utility function: U = XY that earns 200 MT and spends on the consumption of goods X and Y, whose prices

Consider the following utility function: U = XY that earns 200 MT

Consider the following utility function: U = XY that earns 200 MT and spends on the consumption of goods X and Y, whose prices are, respectively: Px = 2 and Py = 1. a) Calculate the Marginal Rate of Substitution of good Y by X and say its meaning. b) What is the optimal basket? The utility achieved? c) Determine the marginal utility value of each asset at that point of equilibrium.

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