Answered step by step
Verified Expert Solution
Question
1 Approved Answer
consider the utility function U = 5x +3y 2 , which has MUx = 5 and MUy = 6y . The indifference curves for this
consider the utility function U = 5x +3y2, which has MUx = 5 and MUy = 6y. The indifference curves for this utility function:
a) will have a diminishing marginal rate of substitution of x for y as x increases.
b) will have a constant marginal rate of substitution of x for y as x increases.
c) will have an increasing marginal rate of substitution of x for y as x increases.
d) will be straight lines.
The answer is B, but I don't understand. Please explain
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started