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The Stone-Geary utility is written as u = In U = B In (q - y) where u is the utility index; q is the
The Stone-Geary utility is written as u = In U = B In (q - y) where u is the utility index; q is the commodity, (a) Find the marginal utility of this function with respect to q. (4 Pts) (b) What is the significance of a positive marginal utility? (4 Pts) (c) Find the second derivative of this Function (4 PLS) (d) Does the function exhibit Diminishing Marginal Utility? (4 Pts) (e) What does the second derivative suggest about the curvature of the original utility function? (4 Pts)
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