At the Consumer's Optimal Consumption Bundle, the MRS_XY Is 4

question 96

Multiple Choice

At the consumer's optimal consumption bundle, the MRS_XY is 4, and the marginal utility of good X is 8. What is the marginal utility of good Y?

• A) 1/2
• B) 2
• C) 24
• D) 16

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Definitions:

Initial Investment

The initial sum of money used to start a business project, purchase assets, or acquire starting capital.

Worst Payoff Rate

The lowest possible return or least favorable outcome from an investment or decision under a specific scenario.

ARM

In computing, a family of reduced instruction set computing (RISC) architectures for computer processors. In finance, an adjustable-rate mortgage.

Average Payoff

The expected return or payoff from an investment or decision, calculated as the mean of all possible payoffs.