Question #221183
Given the following Cobb Douglas utility function U(X1,X2)=Xc1,Xd2 determining marginal utilities for good X1 and X2 respectively what is the marginal rate of substitution MRSx 1 x 2 and the marginal rate of substitution MRs x 2 x 1
C(y)=10y2+100 what is the supply curve
1
Expert's answer
2021-07-30T10:57:02-0400

U(x1,x2)=xcxdU(x_1,x_2)=x^cx^d

MRSx1,x2=MUx1MUx2MRS_x1,_x2=\frac {MU_x1}{MU_x2}

MUx=cx1(c1)x2dMU_x=cx_1^(c-1)x_2^d

MUX2=dx1cx2(d1)MU_X2=dx_1^cx_2^(d-1)


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