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Suppose that the utility function is: u(x 1 ,x 2 )=(sqrt(x 1 ))+x 2 1- How would I find the level of utility at(x 1
Suppose that the utility function is: u(x1,x2)=(sqrt(x1))+x2
1- How would I find the level of utility at(x1,x2)=(9,1).
2- Suppose that x1=9increases by0.01
How can I find Find such that:
u(9,1)=u(9+0.01,1+)
3- Can you please explain how to Evaluate the approximate MRS by:
/0.01
4- How would I show that theapproximate MRS evaluated in part 3 is approximately the same from adirect calculation using calculus.
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