Suppose a consumer's preferences for hamburgers and root beer can be represented by the utility function...

 

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Suppose a consumer's preferences for hamburgers and root beer can be represented by the utility function U = H+R. H measures the number of hamburgers consumed, and R the number of root beers. (i) Using this utility function, find the Marginal Utility of hamburgers and Root beer. Also, explain what it means. [3 marks] (ii) Does the consumer believe that more is better for each good? Explain. [2 marks] (iii) Does the consumer have a diminishing marginal utility of hamburgers? Is the marginal utility of root beer diminishing? Show your work. [2 marks] Suppose a consumer's preferences for hamburgers and root beer can be represented by the utility function U = H+R. H measures the number of hamburgers consumed, and R the number of root beers. (i) Using this utility function, find the Marginal Utility of hamburgers and Root beer. Also, explain what it means. [3 marks] (ii) Does the consumer believe that more is better for each good? Explain. [2 marks] (iii) Does the consumer have a diminishing marginal utility of hamburgers? Is the marginal utility of root beer diminishing? Show your work. [2 marks]

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i The marginal utility of hamburgers is given by MUH UH 12H The marginal utility of root beer is giv... View the full answer