Question: Suppose a person has a utility function given by U = [ x^ 0.2+ y^ 0.2]^5. MUx =[ x^0.2 + y^0.2 ]^4 x^-0.8 MUy =[

Suppose a person has a utility function given byU= [x^0.2+y^0.2]^5.

MUx=[x^0.2+y^0.2]^4x^-0.8

MUy=[x^0.2+y^0.2]^4y^-0.8.

This utility function exhibits the property of diminishingMRSx,y. and the elasticity of substitution is constant equal to 1.25.

True or False?

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