Sam's utility function is given by U(x₁, x₂) = 5 In(x₁) + 4.9ln(x₂) where x₁ denotes the quantity consumed of good i, i =1, 2. Enter below the value of Sam's marginal rate of substitution of good 2 in terms of good 1 at the bundle (point) where x₁ = 3.6 and x₂ = 3.7.

Sam's utility function is given by U(x₁, x₂) = 5 In(x₁) + 4.9ln(x₂) where x₁ denotes the quantity consumed of good i, i =1, 2. Enter below the value of Sam's marginal rate of substitution of good 2 in terms of good 1 at the bundle (point) where x₁ = 3.6 and x₂ = 3.7.

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Sam's utility function is given by
U(x₁, x₂) = 5 In(x₁) + 4.9ln(x₂)
where x; denotes the quantity consumed of good i, i =1, 2.
Enter below the value of Sam's marginal rate of substitution of good 2 in terms of good 1 at the bundle (point) where x₁
= 3.6 and x₂ = 3.7.

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A utility function is a representation used to describe personal preferences for products or services that go beyond their stated monetary value.

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