Oscar consumes only two goods, X and Y. Assume that Oscar is not at a corner solution, but he is maximizing utility. Which of the following is NOT necessarily true? (a) MRSxy = Px/Py. (b) MUx/MUy = Px/Py. (c) Px/Py = Income. (d) Px/Py = slope of the indifference curve at the optimal choice. (e) MUx/Px = MUy/Py.
Oscar consumes only two goods, X and Y. Assume that Oscar is not at a corner solution, but he is maximizing utility. Which of the following is NOT necessarily true? (a) MRSxy = Px/Py. (b) MUx/MUy = Px/Py. (c) Px/Py = Income. (d) Px/Py = slope of the indifference curve at the optimal choice. (e) MUx/Px = MUy/Py.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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24. Oscar consumes only two goods, X and Y. Assume that Oscar is not at a corner solution,
but he is maximizing utility. Which of the following is NOT necessarily true?
(a) MRSxy = Px/Py.
(b) MUx/MUy = Px/Py.
(c) Px/Py = Income.
(d) Px/Py = slope of the indifference curve at the optimal choice.
(e) MUx/Px = MUy/Py.
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