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An individuals utility function is given by U = 900x₁ + 500x₂ + 6x₁x2 − x² − x²/2, when the weekly amount of leisure is X1 = 140 and earned income is x₂ = 800 answer the following: 1. The marginal utility of ₁ is 2. The marginal utility of 2 is 3. Use the small increments formula to estimate the change in the utility when ₁ decreases by 1 and 2 increases by 4. The change - 4. Does the law of diminishing marginal utility hold? 5. The MRCS at a given values is Enter non-integer numerical values as decimals to at least 3 decimal places. Note: you must use a . and not, for a decimal point.

An individuals utility function is given by U = 900x₁ + 500x₂ + 6x₁x2 − x² − x²/2, when the weekly amount of leisure is X1 = 140 and earned income is x₂ = 800 answer the following: 1. The marginal utility of ₁ is 2. The marginal utility of 2 is 3. Use the small increments formula to estimate the change in the utility when ₁ decreases by 1 and 2 increases by 4. The change - 4. Does the law of diminishing marginal utility hold? 5. The MRCS at a given values is Enter non-integer numerical values as decimals to at least 3 decimal places. Note: you must use a . and not, for a decimal point.

Big Ideas Math A Bridge To Success Algebra 1: Student Edition 2015
Big Ideas Math A Bridge To Success Algebra 1: Student Edition 2015
1st Edition
ISBN:9781680331141
Author:HOUGHTON MIFFLIN HARCOURT
Publisher:HOUGHTON MIFFLIN HARCOURT
Chapter8: Graphing Quadratic Functions
Section: Chapter Questions
Problem 30CR
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An individuals utility function is given by U = 900x₁ + 500x₂ + 6x₁x2 − x² − x²/2, when the weekly amount of leisure is X1 = 140 and earned income is x₂ = 800 answer the following: 1. The marginal utility of ₁ is 2. The marginal utility of 2 is 3. Use the small increments formula to estimate the change in the utility when ₁ decreases by 1 and 2 increases by 4. The change - 4. Does the law of diminishing marginal utility hold? 5. The MRCS at a given values is Enter non-integer numerical values as decimals to at least 3 decimal places. Note: you must use a . and not, for a decimal point.
Transcribed Image Text:An individuals utility function is given by U = 900x₁ + 500x₂ + 6x₁x2 − x² − x²/2, when the weekly amount of leisure is X1 = 140 and earned income is x₂ = 800 answer the following: 1. The marginal utility of ₁ is 2. The marginal utility of 2 is 3. Use the small increments formula to estimate the change in the utility when ₁ decreases by 1 and 2 increases by 4. The change - 4. Does the law of diminishing marginal utility hold? 5. The MRCS at a given values is Enter non-integer numerical values as decimals to at least 3 decimal places. Note: you must use a . and not, for a decimal point.
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