Question: Let say the utility function as U(X, Y ) = ln X + Y Shows that the marginal rate of substitution (MRS) is the same

Let say the utility function as U(X, Y ) = ln X + Y Shows that the marginal rate of substitution (MRS) is the same on on all of the indifference curves at a given X.

Step by Step Solution

★★★★★

3.44 Rating (167 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

To demonstrate that the Marginal Rate of Substitution MRS is the same on all of the indifference cur... View full answer

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!

If Robinsons marginal rate of substitution between coconuts and fish is 2 and the marginal rate of transformation between the two goods is1, what should he do if he wants to increase his utility?

Suppose a consumer who has a marginal rate of substitution of current consumption for future consumption that is a constant, b. a. Determine how this consumers choice of current consumption, future...

Suppose a chair manufacturer finds that the marginal rate of technical substitution of capital for labor in her production process is substantially greater than the ratio of the rental rate on...

23. A class of utility functions we have not yet discussed are quasilinear utility functions. In particular, quasilinear utility functions have the form U061, x2) = f(x,) + 5x2 where b is a constant...

The 234rty Describe the Pareto optimum or the set of Pareto optima. Is it unique? Is perfect risk sharing achieved? Why or why not? Answer the same question if the state 2 endowments were 5 for agent...

A consumer has preferences represented by the utility function U ( x 1 , x 2 )=10( x 1 2 +2 x 1 x 2 + x 2 2 )50. For this consumer, goods 1 and 2 are perfect substitutes and indifference curves are...

Practice question for my final exam Rita has a budget of 600 to spend on theatre tickets (X) and on restaurant meals (Y ). Each theatre ticket is priced at 60 (denoted by PX), whereas the price of a...

I welcome any microeconomics tutor to help me with a step by step calculation of each question, thank you 46 28794_S40...03_ques tions J Question I: assume that a firm has variable cost given by V...

QUESTION 21 1. The slope of a consumer's indifference curve represents A. the tradeoff in the market between the two goods. B. the tradeoff in the consumer's mind betwen the two goods. C. the total...

22. A class of utility functions we have not yet discussed are quasilinear utility functions. In particular, quasilinear utility functions have the form U (351,962) = f (36,) +5362 where b is a...

Marea's Cakes sells its cakes for $30 each. Ingredients cost Marea on average $10 per cake and she pays her baker $10 per cake. For the upcoming year, Marea's fixed costs will be $50,000 and she...

Sales Revenue $ 1 0 0 0 0 0 , Variable Costs $ 6 0 0 0 0 , Fixed Costs $ 2 0 0 0 0 . What is the

According to Wheeler (Axiom 7): "Every data set contains noise. Some data sets also contain signals. Before you can detect the signals within your data, you must filter out the noise". Explain the...

Lavazza distributes ground coffee in three supply chain channels (i = 1, 2 and 3). For each channel the demand-price relationship (in boxes) is linearly defined by the constants A1, A2 and A3 and...

Develop analysis in collaboration with public health and community-based organizations to improve the health of the population by selecting a priority population on which to focus then do the...

Do you believe that the advancement of digitalisation has rendered microeconomic theory obsolete? Give an example to back up your claims.

Alpha is a multinational company and expects to receive 5,000,000 Japanese yen in 180 days from a Japanese company. You are given the following information: Deltas 180-day account receivable:...

What are the six activities involved in the physical supply/distribution system?

Miss Muffet always likes to have things just so. In fact the only way she will consume her curds and whey is in the ratio of 2 units of whey per unit of curds. She has an income of $20. Whey costs...

Brother Jed takes heathens and reforms them into righteous individuals. There are two inputs needed in this process: heathens (who are widely available) and preaching. The production function has the...

In a production process is it possible to have decreasing marginal product in an input and yet increasing returns to scale?

10. What is the difference between a hyperpolarization and a depolarizationpg105

13. As the membrane reaches the peak of the action potential, what brings the membrane down to the original resting potentialpg105

2. In the laboratory, researchers can apply an electrical stimulus at any point along the axon, making action potentials travel in both directions from the point of stimulation. An action potential...