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Compute the MRS for the Following Utility Functions

Question 5

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 = ...

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