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Suppose That Angie's MUX = Y2 and MUY = 2XY

Question 87

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Suppose that Angie's MUX = Y2 and MUY = 2XY. The price of good X is $10 and the price of good Y is $2. If Angie is consuming 8 units of good X and 16 units of good Y, is she maximizing utility? Explain your answer.

Correct Answer:

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To maximize utility, MRSXY = PX/P...

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