Curve corresponding to the maximal level of utility found

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A) Jim consumes two goods X and Y. His utility function is as follows: U (X,Y) = 2XY. For Px = $4, Py = $1, and a total budget of $40, find the amount of X and Y that maximize Jim’s utility. Find the corresponding level of utility. In a graph construct his indifference curve corresponding to the maximal level of utility found. In the same graph draw Jim’s budget line and indicate the point where U is maximal. What is the MRSxy in that point (i.e. point where U is max).

Reference no: EM131006243

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