For each of the following utility functions: Calculate MUx, MUy, MRSx,y; determine whether or not the property
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Question:
For each of the following utility functions: Calculate MUx, MUy, MRSx,y; determine whether or not the property of “more is better” is satisfied for both
goods; determine whether or not the marginal utility of x diminishes,
remains constant, or increases as the consumer buys more x; determine whether or not the marginal rate of substitution diminishes, remains constant, or increases as the consumer substitutes x for y along an indifference curve; and sketch the graph of a typical indifference curve.
(a) U(x,y)=(xy)^1/2
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