question 1 :Why do functions with DEcreasing marginal utility in each good bow inward/toward the origin. Draw a diagram and how that shape captures diminishing MU in both goods.
question2 : Consider the utility function with U =
4X0.25Y0.50
a. What is the marginal utility of X?
b. What is the marginal utility of Y?
c. What is the marginal rate of substitution?
Get Answers For Free
Most questions answered within 1 hours.