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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}}"
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