Business, 28.01.2022 02:30 luccim

Suppose the utility function of a consumer of goods x and y has the simple form u(X, Y) = √X. Y a) Graph (sketch) the u= 10 indifference curve associated with this utility function.

b) If X= 5, what must Y be equal to on the u= 10 indifference curve. What is the marginal rate of substitution (MRS) at this point?

c) In general, develop an expression for MRS for this utility function showing how this can be interpreted as the ratio of marginal utilities for X and Y

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Suppose the utility function of a consumer of goods x and y has the simple form u(X, Y) = √X. Y a)...

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