Bill is the only person on an island, and he has an endowment of 20 units of coconuts (C) and 5 units of water (W). His utility function is: U(C,W) = In(C) +2 ln(W) a) Find the marginal utility of C and W. b) Find the marginal rate of substitution when Bill consumes all of his endowment.

Bill is the only person on an island, and he has an endowment of 20 units of coconuts (C) and 5 units of water (W). His utility function is: U(C,W) = In(C) +2 ln(W) a) Find the marginal utility of C and W. b) Find the marginal rate of substitution when Bill consumes all of his endowment.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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