At the consumer's optimal consumption bundle, the MRSXY 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

Question

Quizplus · Accepted Answer

At the optimal consumption bundle, MRSXY = MUx/MUy = 4. And, MUx = 8. Therefore, MUy = MUx/MRSXY = 8/4 = 2.
So, the marginal utility of Good Y is 2.

To find the best choice(s), we need more information or constraints. Without any constraints, there can be multiple choices that satisfy the given conditions.

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