Question: 5 . Consider the utility function U ( x , y ) = y x with the marginal utilities MUx = y / ( 2

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

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