Darius's Utility Function Is U = 6XY, Where the MU_X

question 69

Essay

Darius's utility function is U = 6XY, where the MU_X = 6Y and MU_Y = 6X. The prices of good X and good Y are $12 and $15, respectively. Suppose that Darius's indifference curve is tangent to his budget constraint, where he is consuming 20 units of good X. How many units of good Y must Darius be consuming?

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Definitions:

Controlling

Controlling refers to management activities that ensure the organization's goals are consistently being met in an effective and efficient manner.

Gross Profit

Net sales less cost of goods sold.

Future Revenue

Income that a company expects to receive from its normal business activities in future periods.

Gross Profit

The difference between sales revenue and the cost of goods sold (COGS), indicating the basic profitability of a company's core business operations.