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A) Elodie's preferences are represented by the following utility function: U(C,L) = 2C1/3 L2/3. (i) Elodie's marginal utility of consumption is MUC = 2L2/3
A) Elodie's preferences are represented by the following utility function: U(C,L) = 2C1/3 L2/3. (i) Elodie's marginal utility of consumption is MUC = 2L2/3 3C2/3 and her marginal utility of leisure is given by MUL 4C1/3 = 3L1/3 Determine her marginal rate of substitution between leisure and consumption, MRSL,C, and simplify your answer where possible. (ii) Find the equation representing her indifference curve for the utility level = 10, solved for C.
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Intermediate Microeconomics
Authors: Hal R. Varian
9th edition
978-0393123975, 393123979, 393123960, 978-0393919677, 393919676, 978-0393123968
