X2 2 Martha's preferences for apples (x) and bananas (x2) can be expressed as U(x1, x2)=...

 

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X2 2 Martha's preferences for apples (x₁) and bananas (x2) can be expressed as U(x1, x2)= X₁² a.) What kinds of preferences does Martha have? b.) Compute the expression for the indifference curve through the point (2,4). c.) Compute the marginal rate of substitution of apples for banana along this indifference curve. Compute the value of the MRS at (2,4) and at (1,16), d.) Compute the formula for a marginal utility of a banana, and the marginal utility of an apple. e.) Compute the marginal rate of substitution of apples for bananas using the marginal utilities. Compute the value of the MRS at (2,4) and at (1, 16). X2 2 Martha's preferences for apples (x₁) and bananas (x2) can be expressed as U(x1, x2)= X₁² a.) What kinds of preferences does Martha have? b.) Compute the expression for the indifference curve through the point (2,4). c.) Compute the marginal rate of substitution of apples for banana along this indifference curve. Compute the value of the MRS at (2,4) and at (1,16), d.) Compute the formula for a marginal utility of a banana, and the marginal utility of an apple. e.) Compute the marginal rate of substitution of apples for bananas using the marginal utilities. Compute the value of the MRS at (2,4) and at (1, 16).

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a Marthas preferences can be classified as CobbDouglas preferences which are represented by the util... View the full answer