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Paul's utility function is u(x, y) = xy2. Let unit prices be given by Px = 6 cents, Py = 2 cents, and assume that Paul's budget is the same as Peter's from the previous problem: he has $9 to spend on coffee and sugar. Find Paul's best choice. Illustrate it graphically.
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A firm has the following inverse demand function: where Q is Quantity and P is Price (a) Find the firm's marginal revenue function. (b) Find the level of out
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