Question
U(X,Y) = X0.4Y0.6 (a) Does this utility function exhibit diminishing marginal utility in X? Show why or why not. (b) Does this utility function exhibit
U(X,Y) = X0.4Y0.6
(a) Does this utility function exhibit diminishing marginal utility in X? Show why or why not.
(b) Does this utility function exhibit diminishing marginal rate of substitution? Mathematically show
and verbally explain why it has (or doesn't have) such property.
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Economics
Authors: Campbell McConnell, Stanley Brue, Sean Flynn
21st Edition
1259723224, 9781259723223
