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

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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2)Ben is choosing between cookies and soda. Denote the marginal utility of cookies is MUc, and the marginal utility of soda is MUs. Which of the following relationship is true regarding the marginal utility of substitution (MŘS) of cookie in terms of soda? A) MRS= MUc B) MRS = MUS C) MRS = MUS / MUC D) MRS = MUc / MUs
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