Re: problem sets

Posted by Amit Goyal on Sep 27, 2013; 5:07pm
URL: http://discussion-forum.276.s1.nabble.com/problem-sets-tp7583841p7584035.html

(10, 0) and (0, 10) are better than (5, 5) and are both affordable. So, (5, 5) cannot be a utility maximizing choice. Check that (10, 0) and (0, 10) both solves this problem.