Answer to Question #125557 in Microeconomics for umer

Question #125557

If Maria’s utility function is U = A Xayb what is his marginal utility functions for X and Y? Find the MRS between x and y.

Expert's answer

His marginal utility functions for X and Y are:

"MU(X) = U'(X) = A\u00d7a\u00d7X^{a - 1}\u00d7Y^b."

"MU(Y) = U'(Y) = A\u00d7b\u00d7X^a\u00d7Y^{b - 1}."

"MRS(XY) = MU(X)\/MU(Y) = \\frac{a\u00d7X^{a - 1}\u00d7Y^b} {b\u00d7X^a\u00d7Y^{b - 1}}"

Learn more about our help with Assignments: Microeconomics

No comments. Be the first!