1. If U(12, 9) = 33, U(13, 9) = 36, and U(12, 10) = 39, then the MRS at (A, B) = (12, 9) is -2 %3D %3D

Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter17: Making Decisions With Uncertainty
Section: Chapter Questions
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True or False:
1. If U(12, 9) = 33, U(13, 9) = 36, and U(12, 10) = 39,
then the MRS at (A, B) = (12, 9) is –2
2. If U(5, 8) = 40, U(6, 8) = 44, and U(5, 10) = 44,
then the MRS at (A, B) = (5, 8) is –1/2
3.For the Cobb-Douglas utility function with a =
2/3 and B = 1/3, the indifference curve
corresponding to a utility of 3 utils is B = 27A-2
4.
For the Cobb-Douglas utility function with a =
1/3 and B = 2/3, the indifference curve
corresponding to a utility of 5 utils is B = 125A-2
Transcribed Image Text:True or False: 1. If U(12, 9) = 33, U(13, 9) = 36, and U(12, 10) = 39, then the MRS at (A, B) = (12, 9) is –2 2. If U(5, 8) = 40, U(6, 8) = 44, and U(5, 10) = 44, then the MRS at (A, B) = (5, 8) is –1/2 3.For the Cobb-Douglas utility function with a = 2/3 and B = 1/3, the indifference curve corresponding to a utility of 3 utils is B = 27A-2 4. For the Cobb-Douglas utility function with a = 1/3 and B = 2/3, the indifference curve corresponding to a utility of 5 utils is B = 125A-2
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