Question: Consider the following utility function U (X,Y) = X 1/2 Y 1/2 A. What is the name of a utility function of this form B.

Consider the following utility function

U (X,Y) = X1/2Y1/2

A. What is the name of a utility function of this form

B. if U=10 X=2 what does Y=

C. What is the marginal utility of X and of Y

D. The marginal rate of substitution for X with Y is?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!