An individuals utility function is given by U = 340x1 + 960x2 + 2x, x2 - 2x – x3/2, when the weekly amount of leisure is x = 132 and earned income is x2 = 760 answer the following 1. The marginal utility of x is 2. The marginal utility of x2 is 3. Use the small increments formula to estimate the change in the utility when x decreases by 1 and x2 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 = 340x1 + 960x2 + 2x, x2 - 2x – x3/2, when the weekly amount of leisure is x = 132 and earned income is x2 = 760 answer the following 1. The marginal utility of x is 2. The marginal utility of x2 is 3. Use the small increments formula to estimate the change in the utility when x decreases by 1 and x2 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.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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