Question: 1.2.7 If Jos Marias utility function is U(q1, q2) = q1 + Aq1 a q2 b + q2, what is his marginal utility from q2?

1.2.7 If José Maria’s utility function is U(q1, q2) =

q1 + Aq1 a q2 b + q2, what is his marginal utility from q2?

What is his marginal rate of substitution between these two goods? (Hint: Look at Solved Problem 3.2.) M

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