9. Given the following utility function for goods A and BU =200xA + 300xB + 4x4XB – 2x% – x-What is the marginal utility of A when xA = 10 and xg = 4?O 136O 146O 156O 166O 176 10. (Follow-on from Q9)Which, if any, of the following statements are correct?(1) A and B are substitutes(ii) A and B both demonstrate diminishing marginal utility(iii) Utility is maximised when MUĄ and MUg are 0O () and (I)O (ii) onlyO (ii) and (ii)O (ii) onlyO All of them

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Answered: 9. Given the following utility function…

9. Given the following utility function for goods A and B = 200x4 + 300xg + 4x4Xg – 2x – x3 - What is the marginal utility of A when xA = 10 and Xp = 4? O 136 O 146 O 156 O 166 O 176

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

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Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

9. Given the following utility function for goods A and B
U =
200xA + 300xB + 4x4XB – 2x% – x
-
What is the marginal utility of A when xA = 10 and xg = 4?
O 136
O 146
O 156
O 166
O 176

10. (Follow-on from Q9)
Which, if any, of the following statements are correct?
(1) A and B are substitutes
(ii) A and B both demonstrate diminishing marginal utility
(iii) Utility is maximised when MUĄ and MUg are 0
O () and (I)
O (ii) only
O (ii) and (ii)
O (ii) only
O All of them

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