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The Exponents of a Cobb-Douglas Utility Function,U = C α\alpha M α\alpha

Question 63

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The exponents of a Cobb-Douglas utility function,U = C α\alpha M α\alpha -1,represent:


A) the share of income devoted to that good.
B) the rate at which a consumer can trade one good for the other.
C) the quantity of each good that is demanded.
D) the amount of utility each good provides.

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