Utility functions of a consumer: U = 20x10.4x20.4 Specify: a. marginal utility of each item. b. If the consumption of x1seee is 80 and x2 as much as 60 units, the price of Px120 and Px2 25, Determine if there is a balance of consumption?

Utility functions of a consumer: U = 20x10.4x20.4 Specify: a. marginal utility of each item. b. If the consumption of x1seee is 80 and x2 as much as 60 units, the price of Px120 and Px2 25, Determine if there is a balance of consumption?

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter20: Consumer Choice: Maximizing Utility And Behavioral Economics

Section: Chapter Questions

Problem 6QP

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Question

Utility functions of a consumer:

U = 20x_1^0.4x_2^0.4

Specify:
a. marginal utility of each item.
b. If the consumption of x₁seee is 80 and x₂ as much as 60 units, the price of Px₁20 and Px₂ 25, Determine if there is a balance of consumption?

Definition Definition Satisfaction derived from the consumption of an additional unit of any commodity.

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