Calculus 4.12 (0) Joe Bob has a utility function given by u(x 1 , x 2 )
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Calculus 4.12 (0) Joe Bob has a utility function given by u(x1, x2) =
(a) Compute Joe Bob’s marginal rate of substitution: MRS(x1, x2) =____
(b) Joe Bob’s straight cousin, Al, has a utility function v(x1, x2) = x2+x1.
Compute Al’s marginal rate of substitution. MRS(x1, x2) =_____
(c) Do u(x1, x2) and v(x1, x2) represent the same preferences? _____ .Can you show that Joe Bob’s utility function is a monotonic transformation of Al’s? ________
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