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1.Timothy has a utility function that depends on the number of musicals and the number of operas seen each month. His utility function is given
1.Timothy has a utility function that depends on the number of musicals and the number of operas seen each month. His utility function is given by, where x is the number of musicals per month and y is the number of operas seen per month. Provide a careful reasoning for each of the following questions. (7 pts.)
a)Does Timothy believe that more is better for each good? (3 pts.)
b)Does Timothy have a diminishing marginal utility for each good? (2 pts.)
c)Does the absolute value of marginal rate of substitution of x for y diminish? (2 pts.)
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