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Joe's utility function for movies at the theater ( T ) and DVDs watched at home (D) is given by U = 4 T 2
Joe's utility function for movies at the theater (T) and DVDs watched at home (D) is given by U = 4 T2 + D2
- Calculate the marginal utilities for each good.
- Write an equation for MRSTD.
- Would bundles of (T = 2 and D = 2) and (T = 1 and D = 4) be on the same indifference curve?
- Are Joe's indifference curves convex? (Does MRSTD fall as T rises?)
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