Cobb-Douglas Example 1. Caitlyn's utility is given by U = X x Y, where MUX = Y and MUX. Px=2 P = 4 and M = 80. a. What is Caitlyn's MRS at X = 30 and Y = 5? b. Why is X = 30 and Y = 5 not her optimal bundle? c. Find her optimal consumption bundle.
Cobb-Douglas Example 1. Caitlyn's utility is given by U = X x Y, where MUX = Y and MUX. Px=2 P = 4 and M = 80. a. What is Caitlyn's MRS at X = 30 and Y = 5? b. Why is X = 30 and Y = 5 not her optimal bundle? c. Find her optimal consumption bundle.
Chapter3: Preferences And Utility
Section: Chapter Questions
Problem 3.3P
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