Essay
Consider the following utility function: U(x,y)= 2y + x1/3
a)What is the shape of an indifference curve (e.g., smooth, kinked, straight line)? Is the MRS diminishing?
b)How does the MRS change as you move from the indifference curve associated with the utility number 8 to the indifference curve associated with the utility number 27 when x = 2? What about when x = 3? (Calculus required)
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a)The indifference curves are downward s...View Answer
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