Question

a)     What is his marginal rate of substitution between X =3 and Y=4? If A=1, a = 0.4 and b = 0.5.

Answer 1

Marginal Rate of Substitution=$\frac{a}{b}×\frac{Y}{X}$

MRS=$\frac{O.4}{O.5}×\frac{4}{3}$

MRS=1.067