Question
For each of the following utility functions, show whether the underlying preferences are monotonic, find the marginal utilities of x and y, and show if
For each of the following utility functions, show whether the underlying preferences are monotonic, find the marginal utilities of x and y, and show if these are increasing, constant or diminishing:
a.u(x, y)=x2+4y2
b.u(x,y)=2x+5y
c.u(x,y)=3x+5y1/2
d.u(x,y)=4xy?
2.For the utility functions in question 1, find the MRTS. What would the indifference curves look like for each?
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An Introduction to Analysis
Authors: William R. Wade
4th edition
132296381, 978-0132296380
