In case of equilibrium, MUx = 50 and MUY = 100 Px = 25 then what will be the value of PY?
Answer & explanation
Correct answer: option 2
The correct answer is option 2: 50
The equilibrium condition is as follows:
\(\frac{MU_x}{ P_x}\) = \(\frac{MU_y}{ P_y}\)
\(\frac{ 50}{ 25}\) = \(\frac{100 }{P_y }\)
2 = \(\frac{100 }{P_y }\)
Py = \(\frac{ 100}{ 2}\)
Py = 50