The utility (U) obtained by Olympia by consuming food (F) and shelter (S) is given by utility function U = FS Calculate the marginal rate of substitution...

      

The utility (U) obtained by Olympia by consuming food (F) and shelter (S) is given by utility
function U = FS
Calculate the marginal rate of substitution when Olympia spends the Sh. 1,200 budget by
purchasing three units of each.

  

Answers


Wilfred
Marginal rate of substitution when Sh. 1200 is spent on 3 units each of food and
shelter: This point is represented by (h) in figure below
curve106220191141.png

form56220191145.png
form36220191147.png



Wilfykil answered the question on February 6, 2019 at 07:48


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