Individuals derive utility from picnics, p, and kayak trips, k. Assuming that an individual's utility is U(p,k) = k 0.5p 0.5 and income is $100, what is the marginal rate of substitution (MRS) between picnics and kayak trips? MRS = -1. MRS = - MRS = 1. There is no substitution because picnics and kayak trips are perfect complements.

Answer rating: 100% (QA)

The marginal rate of substitution MRS between ... View the full answer