Essay
Compute the MRS for the following utility functions:
a.U(X,Y)= aln(X)+ bln(Y),
b.U(X,Y)=XᵃYᵇ,and
c.U(X,Y)=aX + bY,
where a and b are strictly positive constants.
Correct Answer:
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a.MUX = a/X,MUY = b/Y,thus MRS...View Answer
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