3.3 Consider the following utility functions: a. U(x, y) = xy. b. c. U(x, y) = x...

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3.3 Consider the following utility functions:

U(x, y) = xy.

U(x, y) = x 2y 2

U(x, y) = ln x + ln y.

Show that each of these has a diminishing MRS but that they exhibit constant, increasing, and decreasing marginal utility, respectively. What do you conclude?

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Microeconomic Theory Basic Principles And Extensions

ISBN: 9781473729483

1st Edition

Authors: Christopher M Snyder, Walter Nicholson, Robert B Stewart

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Question Posted: Nov 12, 2024 02:00 AM

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3.3 Consider the following utility functions: a. U(x, y) = xy. b. c. U(x, y) = x...

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Microeconomic Theory Basic Principles And Extensions

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