PLEASE SHOW ME HOW TO DO THE RIGHT CALCULATIONS. 6. Suppose goods X and Y are produced along a production possibilities frontier X? + 4Y² = 500 and they areperfect substitutes such that U = X +Y. The slope of the production possibilities frontier is2/ 500 – X²What is the MRS at the optimal point?a.b.-1с.-4d.-5

Since the good X and good Y are perfect substitute. The marginal rate of substitution for perfect…

Suppose goods X and Y are produced along a production possibilities frontier X² + 4Y² = 500 and they are perfect substitutes such that U = X + Y. The slope of the production possibilities frontier is -X 2V 500 – X² What is the MRS at the optimal point? а. b. -1 с. -4 d. -5

Suppose goods X and Y are produced along a production possibilities frontier X² + 4Y² = 500 and they are perfect substitutes such that U = X + Y. The slope of the production possibilities frontier is -X 2V 500 – X² What is the MRS at the optimal point? а. b. -1 с. -4 d. -5

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter2: Choice In A World Of Scarcity

Section: Chapter Questions

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PLEASE SHOW ME HOW TO DO THE RIGHT CALCULATIONS.

6. Suppose goods X and Y are produced along a production possibilities frontier X? + 4Y² = 500 and they are
perfect substitutes such that U = X +Y. The slope of the production possibilities frontier is
2/ 500 – X²
What is the MRS at the optimal point?
a.
b.
-1
с.
-4
d.
-5

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