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Explain about the optimal consumption rule.
The optimal consumption rule:
While a consumer maximizes utility, the marginal utility per dollar spent should be similar for all goods and services into the consumption bundle.
MUC/PC = MUP/PP
Risk Neutral - A person is a risk neutral if they show no preference between certain, and an uncertain income with the same expected value.
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Xd(Px)=5000-100Px
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