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For each of these utility functions,??

b. Compute the MRS.

c. Do these tastes have diminishing marginal rates ofsubstitution? Are they convex?

d. Construct an indifference curve for each of these functionsfor utility numbers U1 = 10 , U2 = 100 , U3 = 200 .

e. Do these utility functions represent different preferenceorderings?

 

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1. Consider the following utility functions: (i) U(x,y) = 6xy, (ii) U(x, y) = (¹/5)xy, (iii) U(x, y) = (2xy)², MUX = 6y and MUy = 6x MU, y and MU, = x MU₂ = 8xy² and MU,= 8x²y (note-corrected MU's) 1. Consider the following utility functions: (i) U(x,y) = 6xy, (ii) U(x, y) = (¹/5)xy, (iii) U(x, y) = (2xy)², MUX = 6y and MUy = 6x MU, y and MU, = x MU₂ = 8xy² and MU,= 8x²y (note-corrected MU's)

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1 i MRSxy MUyMUx 6x6y 1 Constant MRS linear utility ... View the full answer