2. Consider U(x, y) = x-2y a. Find the Marginal Utilities, MUx and MUy. What do...

 

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2. Consider U(x, y) = x-2y a. Find the Marginal Utilities, MUx and MUy. What do the marginal utilities imply about how a consumer values goods x and y? b. Fill in the table below with the x value that makes the consumer indifferent for a given utility level and quantity of good y. (Hint: Rearrange the utility function as x = f(U. y).) U=2 U=5 U = 10 y=0 y = 0.5 y = 1 y = 1.5 y = 2 y = 2.5 2. Consider U(x, y) = x-2y a. Find the Marginal Utilities, MUx and MUy. What do the marginal utilities imply about how a consumer values goods x and y? b. Fill in the table below with the x value that makes the consumer indifferent for a given utility level and quantity of good y. (Hint: Rearrange the utility function as x = f(U. y).) U=2 U=5 U = 10 y=0 y = 0.5 y = 1 y = 1.5 y = 2 y = 2.5

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a To find the marginal utilities we need to take partial derivatives of the utility function Ux y wi... View the full answer