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The Utility Function for a Consumer Is U = XY/(X

Question 36

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The utility function for a consumer is U = XY/(X + Y), where the MUX = Y2/(X + Y)2 and MUY = X2/(X + Y)2.
a. What is the slope of the indifference curve when X = 3.75 and Y = 3.75?
b. What is the marginal rate of substitution when X = 4 and Y = 16?

Correct Answer:

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a. Slope = -MRSXY = -M...

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