Question: 12. Consider the utility function u(x1 , x2 ) 5 (x1/2 1 x1/2 2 ). Take natural logs of this function and calculate the marginal

12. Consider the utility function u(x1

, x2

) 5 (x1/2 1 x1/2 2 ). Take natural logs of this function and calculate the marginal rate of substitution of the new function. Can the natural log transformation be applied to utility functions such that the new utility function represents the same underlying tastes?

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