Ernest wants to achieve a utility level of 100. His utility function is U = XY, where MU_X = Y and MU_Y = X. What is the least amount of money (M) that Ernest can spend to achieve a utility level of 100? Ernest's budget constraint is M = 8X + 2Y.

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The Answer of Ernest wants to achieve a utility level of 100. His utility function is U = XY, where MU_X = Y and MU_Y = X. What is the least amount of money (M) that Ernest can spend to achieve a utility level of 100? Ernest's budget constraint is M = 8X + 2Y.

Ernest Wants to Achieve a Utility Level of 100