Compute marginal utilities and marginal rate of substitution for each of the utility functions given below. In each case. explain whether the assumptions of diminishing marginal utility and diminishing marginal rate of substitution are satisfied or not. a) U(X,Y) = 2X-Yy: %3D b) U(X,Y) = XY + 3X + SY c) U(X,Y) = (0.3X +0.7Y") d) U(X,Y) = In (5VX + 2VY) %3D

Compute marginal utilities and marginal rate of substitution for each of the utility functions given below. In each case. explain whether the assumptions of diminishing marginal utility and diminishing marginal rate of substitution are satisfied or not. a) U(X,Y) = 2X-Yy: %3D b) U(X,Y) = XY + 3X + SY c) U(X,Y) = (0.3X +0.7Y") d) U(X,Y) = In (5VX + 2VY) %3D

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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