Question: Suppose that a consumer's utility is given by u ( x , y ) = 2 x ^ ( 1 / 3 ) * y

Suppose that a consumer's utility is given by u(x, y)=2x ^(1/3)* y *2/3 in which case the marginal utilities will be given by and M*U_{x}=(2y ^(2/3))/(3e ^(2/3)); MU y =4x^133y^13.n respectively. What is the marginal rate of substitution when y =10 and x =5 and how should this be interpreted?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
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!

Q:

Suppose a person has a utility function given by U = [x + y]1/ where is a number between - and 1. This is called a constant elasticity of substitution (CES) utility function. You will encounter CES...

Q:

Suppose an individual had a utility function given by: U = XSY 1 . Calculate this individual's Marginal Rate of Substitution (MRSxy) when they have a bundle with 3 units of Good X and 1.5 units of...

Q:

3.15 The benefit function In a 1992 article David G. Luenberger introduced what he termed the benefit function as a way of incorporating some degree of cardinal measurement into utility theory.11 The...

Q:

Suppose that your roommate becomes ill and asks you to go to the store to pick up some food for them. They ask you to pick up some frozen pizzas (P), boxes of cookies (C), and gallons of milk (M). A...

Q:

Y7 Consider that there are two goods, good X and good Y, which are perfect substitutes. The consumer has the utility function given by: U (X, Y) = X + LlY The prices of the goods are given by p), = 3...

Q:

Explain why there is little adverse selection in Employer based health insurance programs, compared to the non-group private market for health insurance. 2. Suppose that in a country with a generous...

Q:

N 2 Suppose that a consumer's utility is given by u (x, y ) =4x 2 + 4y in which case the marginal utilities will be given by MU = and MU = X respectively. Suppose that P =5, P =5, and that /=400. How...

Q:

Suppose that you can only send $100 to home by ship. All ships sink independently with probability 1/2 . (Wilson 2016 Econ 455 Notes) (a) What is the expected value of sending your $100 in 1 ship?...

Q:

please answer this for me Approved PART I - Answer all the questions in this part Question 1 (24 points) Let a consumer's utility be given by U (x, y, z) = In(x) + In( y) + In(2 + z). The consumer...

Q:

I need a tutor to solve this urgent there is a tip attached Approved PART I - Answer all the questions in this part Question 1 (24 points) Let a consumer's utility be given by U (x, y, z) = In(x) +...

Q:

Enter the phrase marketing implementation into your search engine and review the first 20 sites indicated. View several of those representing consultants and agencies offering products and services...

Q:

HearSmart manufactures headphone cases. During September 2012, the company produced and sold 107,000 cases and recorded the following cost data: Requirements 1. Compute the price and efficiency...

Q:

Nagel Equipment has a beta of 0 . 8 8 and an expected dividend growth rate of 4 . 0 0 %

Q:

(a) What is a Budget? What are the four key uses/purpose of a Budget? (b) How do Budgets assist Management with the Role of Planning? (c) List four Benefits and four Limitations of Budgeting. (d) How...