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

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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