Consider the utility function U(x, y) = x^4 + y^2 (a) What happens to the marginal utility of x as y increases? (b) What happens to the marginal utility of x as x increases? (c) Solve for MRSx,y and test whether or not it is diminishing (d) What type of special utility function is this?

Consider the utility function U(x, y) = x^4 + y^2 (a) What happens to the marginal utility of x as y increases? (b) What happens to the marginal utility of x as x increases? (c) Solve for MRSx,y and test whether or not it is diminishing (d) What type of special utility function is this?

ENGR.ECONOMIC ANALYSIS

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Chapter1: Making Economics Decisions

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Question

Consider the utility function U(x, y) = x^4 + y^2
(a) What happens to the marginal utility of x as y increases?
(b) What happens to the marginal utility of x as x increases?
(c) Solve for MRSx,y and test whether or not it is diminishing
(d) What type of special utility function is this?

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