Question

consider the following bivariate utility function

U=25X^2/5Y^3/5

1.find marginal utility of x and y

Answer 1

Solution:

$U = 25X^{\frac{2}{5} } Y^\frac{3}{5}$

Marginal Utility of X (MUx) = $\frac{\partial U} {\partial X}$= $10X^{-\frac{3}{5} } Y^\frac{3}{5}$

 

Marginal Utility of Y (MUy) = $\frac{\partial U} {\partial Y}$ = $15X^{\frac{2}{5} } Y^{-\frac{2}{5} }$