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Business, 17.04.2020 18:28 malachitorres813

Assume you are spending your full budget and purchasing such amounts of X and Y that the marginal utility from the last units consumed is 40 and 20 utils, respectively. Assume
(a) the prices of X and Y are $8 and $4 respectively;
(b) it takes 3 hours to consume a unit of X and 1 hour to consume a unit of Y; and
(c) your time is worth $2 per hour. You should consume less of X and more of Y.

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