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Suppose Goods X and Y Are Produced Along a Production

Question 23

Multiple Choice

Suppose goods X and Y are produced along a production possibilities frontier 4X2 + Y2 = 500 and they are perfect substitutes such that U = X + Y.The slope of the production possibilities frontier is Suppose goods X and Y are produced along a production possibilities frontier 4X<sup>2</sup> + Y<sup>2</sup> = 500 and they are perfect substitutes such that U = X + Y.The slope of the production possibilities frontier is .What is the MRS at the optimal point? A) 0 B) -1 C) -4 D) -5 .What is the MRS at the optimal point?


A) 0
B) -1
C) -4
D) -5

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