Business, 05.03.2020 13:29 boweytom6217
Tracy consumes dress shoes (D) and casual Crocs (C). Her marginal utility from consuming casual Crocs is MU Subscript Upper CMUCequals=20DC and her marginal utility from consuming dress shoes is MU Subscript Upper DMUDequals=10Upper C squaredC2. Her annual shoe allowance is $450450, which she spends on only dress shoes and Crocs. If she pays $5050 for a pair of dress shoes and $2525 for a pair of Crocs, what is her optimal consumption bundle?
Answers: 2
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Tracy consumes dress shoes (D) and casual Crocs (C). Her marginal utility from consuming casual Croc...
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