Paul Has the Utility Function U(q₁,q₂)= Q₁q₂

question 27

Multiple Choice

Paul has the utility function U(q₁,q₂) = q₁q₂.If Paul consumes q₁ = 4 and q₂ = 2 his Marginal Rate of Substitution is

• A) -2.
• B) 1.
• C) -1.
• D) ₋₁/₂.

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