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Kaz's utility function is given by D(x 1 , x 2 )=9.9 x 1 + 5.2 x 2 baba's utility function is given by L(x
Kaz's utility function is given by
D(x1 , x2)=9.9 x1 + 5.2 x2
baba's utility function is given by
L(x1 , x2)=x15.2x29.9
wherexi denotes the quantity consumed of good i, i =1, 2.Compare Kaz's marginal rate of substitution (of good 1 in terms of good 2), MRSD , with baba's marginal rate of substitution, MRSL ,at the bundle where x1 = 8.7 and x2 = 3.1 by stating below the value of the ratioMRSD / MRSL
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