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Consider the following utility functions: a. U (X, Y) = X . Y b. U (X, Y) = X2.Y2 c. U (X, Y) = lnX

Consider the following utility functions:

a. U (X, Y) = X . Y

b. U (X, Y) = X2.Y2

c. U (X, Y) = lnX + lnY

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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