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An individuals utility function is given by U = 200x1 + 800x2 + 3x1x2 x? x3/2, when the weekly amount of leisure is x1 =
An individuals utility function is given by U = 200x1 + 800x2 + 3x1x2 x? x3/2, when the weekly amount of leisure is x1 = 136 and earned income is x2 = 720 answer the following: 1. The marginal utility of x1 is C] 2. The marginal utility of x2 is 3. Use the small increments formula to estimate the change in the utility when x1 decreases by 1 and x2 increases by 4. The change = C] 4. Does the law of diminishing marginal utility hold? 5. The MRCS at a given values is C], Enter noninteger numerical values as decimals to at least 3 decimal places. Note: you must use a . and not , for a decimal point
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