Measure the marginal utility per dollar

Reference no: EM13187916

Let MUA = z = 10 ? x and MUB = z = 21 ? 2y, where z is marginal utility per dollar measured in utils, x is the amount spent on product A, and y is the amount spent on product B. Assume that the consumer has $10 to spend on A and B-that is, x + y = 10. How is the $10 best allocated between A and B?

Reference no: EM13187916

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