Marginal Rate of Substitution and Maximizing the Utility

An agent has a daily budget of $240 and her daily utility function is the consumption of two goods, X and Y:

U(X, Y) = X Y

If the price for good X (Px) is $8 and that for good Y (Py) is $10, what is the best combination of X and Y for the agent's daily consumption?

© SolutionLibrary Inc. July 7, 2020, 10:13 pm 9836dcf9d7