Given utility function U=144q-1.5qsquared
Find marginal utility
Calculate the utility maximising quantity
What is marginal rate of substitution
I) marginal utility;
"MU=\\frac{\\delta U}{\\delta q}"
"=144-3q"
ii)Utility maximizing quantity
"q=\\frac{144}{3}"
"=48"
iii) marginal rate of substitution
Marginal rate of substitution (MRS) is the amount of a good that a consumer is willing to consume compared to another good, as long as the new good is equally satisfying.
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