Suppose the following Lagrangian is formed to maximize a consumer's utility subject to her budget constraint: ? = U(X,Y) + ?(1,000 - 50X - 50Y). The first-order conditions for this problem imply:
A. (?U/?X)/(?U/?Y) = 10.
B. PX/PY = 10.
C. MRS = 10.
D. All of the statements associated with this question are correct.
Answer: D
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