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Peter's Utility Function Is U = 5X + 2Y

question 14

Essay

Peter's utility function is U = 5X + 2Y. What is Peter's marginal utility of good X and good Y? Interpret your answer.


Definitions:

Interest Earned

The amount of money gained as profit from an investment over a certain period of time.

Account

A record summarizing all the transactions pertaining to a single item in the financial statements.

Days

The basic unit of time, equal to 24 hours, used to measure duration from one midnight to the next.

Interest Earned

The amount of money made on an investment over a certain period of time due to interest.

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