Given the utility function ufc radicfc and this budget, Ask an Expert

Economics

Given the utility function U(F,C) = √(FC), and this budget constraint: 100,000 = 4F+40C,

Suppose that a person is consuming more F and less C than the utility maximizing bundle. Would the marginal rate of substitution of F for C be greater or less than the MRS at the maximized utility? Explain.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91705332

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