Marginal utility....

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[匿名]

2009-09-21 1:20 pm

Here is the Question.

Suppose you consume 3 apples per week, and your marginal utility

for apples is 10; and you consume 5 bananas per week, and your

margin al utility for bananas is 20. What must be true about the prices

of apples and bananas, so that your choice is optimal? Explain.

Thanks~~~

回答 (1)

用戶22404

2009-09-22 1:39 am

✔ 最佳答案

In equilibrium, MUx/Px = MUy/Py
Let Px and Py be the price of one banana and apple respectively
20/5Px = 10/3Py
Px/Py=12/10 = 1.2

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