Consider the utility function = . Find the marginal rate of substitution and show that the...

Consider the utility function = . Find the marginal rate of substitution and show that the utility function satisfies the property of diminishing marginal rate of substitution.

Expert Solution

Rahul Sunny answered 2 years ago

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

問題 1 The marginal rate of substitution is the slope of the utility curve. the slope...

問題 1 The marginal rate of substitution is the slope of the utility curve. the slope of the contract curve. the slope of the utility possibilities curve. none of the above. 10 分問題 2 The Edgeworth Box should lie inside the PPF. lie partially inside the PPF. lie completely outside of the PPF. never touch the PPF. 10 分問題 3 The Second Fundamental Theorem of Welfare Economics requires that indifference curves be convex to the origin....

If marginal rate of substitution between wine and cheese is -1 and the marginal rate of...

If marginal rate of substitution between wine and cheese is -1 and the marginal rate of the product transformation between two goods is -2, what should be done in this economy to increase consumers’ utility? Support your answer by a graph.

An MRS & Elasticity of substitution question. Consider the following utility function : Ua(x1, x2) =...

An MRS & Elasticity of substitution question. Consider the following utility function : Ua(x1, x2) = x12 x22 (a) Calculate MRS(x1, x2) (b) Find the Elasticity of Substitution (c) Is the preference homothetic? Is the preference quasilinear? (d) Sketch the indifference curve with x1 on the horizontal and x2 on the vertical axis

Suppose that a consumer's utility function is U = x1x2 and the corresponding marginal rate of...

Suppose that a consumer's utility function is U = x1x2 and the corresponding marginal rate of substitution between x1 and x2, where x1 is on the horizontal axis and x2 is on the vertical axis, is given by MRS = x2/x1. The budget constraint is given by 2x1 + 4x2 = 80. What is the optimal consumption bundle for this consumer? Consider the consumer in question 7. If the price of x 1 increases, A) consumption of x 1 increases...

Consider the marginal rate of substitution (MRS) as it applies to Cletus, who consumes the 2...

Consider the marginal rate of substitution (MRS) as it applies to Cletus, who consumes the 2 goods x1 and x2. Assume in your answers below that MRS is always defined to be a negative number (given that both x1 and x2 are goods), and that x1 is on the horizontal axis and x2 is on the vertical axis. (4 points) How is the MRS defined, mathematically, in terms of the utility Cletus receives from x1 and x2? Be sure to...

Given the utility function U(x1, x2)= -2x1 + x2^2, (a)Find the marginal utility of both the...

Given the utility function U(x1, x2)= -2x1 + x2^2, (a)Find the marginal utility of both the goods. Explain whether preferences satisfy monotonicity in both goods. (b)Using the graph with a reference bundle A, draw the indifference curve and shade the quadrants that make the consumer worse off and better off for the given preferences.

1)Find Marginal Utility for x and determine if it is diminishing Marginal utility for y and...

1)Find Marginal Utility for x and determine if it is diminishing Marginal utility for y and determine if its diminishing Marginal rate of Substitution of x for y (MRSxy) and determine if its diminishing U (x, y) = 2x2/3y1/3 U (x, y) = x3 + 4y1/4 2. Continental Long Distance Telephone service offer am optional package for in-stare calling whereby each month the subscriber gets the first 50 minutes of in-state calls free, the next 100 min at $0.25/min, and...

assumption of diminishing marginal rate of substitution means that

1. The marginal rate of substitution is ________________ (Select all that apply)

1. The marginal rate of substitution is ________________ (Select all that apply)a. Equal to the slope of the budget line at an optimal point if the optimal point is not at a corner.b. How much of each good a consumer can afford.c. The amount of one good an individual would be willing to trade for a different good and be just as well off.d. The slope of the indifference curve.e. Equal to the price ratio at an optimal point if...

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