Microeconomics 18th Edition by Campbell McConnell, Stanley Brue, Sean Flynn

Exercise 20

Let MU a = z = 10 x and MU b = z = 21 2 y , where z is marginal utility measured in utils, x is the amount spent on product A, and y is the amount spent on B. Assume the consumer has $10 to spend on A and B that is, x + y = 10. How is this $10 best allocated between A and B How much utility will the marginal dollar yield