Given the utility function .1/2, 1/3 1/3 U = xx2 and , ,

Given the utility functiondetermine the value of the marginal utilities

at the point (25, 8). Hence
(a) estimate the change in utility when x₁ and x₂ both increase by 1 unit;
(b) find the marginal rate of commodity substitution at this point.

Transcribed Image Text:

.1/2, 1/3 1/3 U = x"x2 and дх, дх,