1. In the utility function U(x,y)=x^5y^2 does Y exhibit diminishing marginal rate of substitution? Please show...

1. In the utility function U(x,y)=x^5y^2

does Y exhibit diminishing marginal rate of substitution? Please show your work.

2.What is the no-waste condition for the utility function U(x,y)=min{x/3,y/5}

express your answer in terms of y as a function of x

3. What is the MRS of the utility function U(x,y)=3x+1/2y? please show your work

Expert Solution

Consider the image below for a stepwise solution to the problem. The marginal utilities are calculated by partially differentiating the utility function with respect to the relevant variable.

1. The function exhibits increasing marginal utilities

2. The no waste condition is y = (5/3)x

3. The MRS of the utility function equals 6.

Rahul Sunny answered 2 years ago

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