Question: Consider the utility function U(x, y) = yx with the marginal utilities MUx = y/(2x) and MUy = x. a) Does the consumer believe that

Consider the utility function U(x, y) = y√x with the marginal utilities MUx = y/(2√x) and MUy = √x.
a) Does the consumer believe that more is better for each good?
b) Do the consumer's preferences exhibit a diminishing marginal utility of x? Is the marginal utility of y diminishing?

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