64 747
Assignments Done
99,3%
Successfully Done
In September 2018

Answer to Question #47807 in Microeconomics for Yoyo

Question #47807
A household consuming a bundle of goods X and Y such that MUX = 15 and MUY = 3 when the prices are such that pX = 5 and pY = 1 is maximizing its “utility”.
Expert's answer
MUx = 15, MUy = 3, Px = 5, Py = 1.
Household is maximizing its utility, if MUx/Px = MUy/Py, so:
15/5 = 3/1 = 3, so utility is maximized.

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be first!

Leave a comment

Ask Your question

Submit
Privacy policy Terms and Conditions