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A consumer consumes two goods and her utility is form by Cobb-Douglas utility function. Her MRS is 0.9 * (q2/q1) Using these information find Marginal utility levels of first amd second goods

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Consumer Choice Theory

Section: Chapter Questions

Problem 6SQ

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Concept explainers

Form Utility

The term utility in general refers to the satisfaction earned from usage of a particular product or service. Utility always plays an important role because it influences various important elements like demand & thereby the price of the good or service as well. Though utility is not easy to measure, various types of economic models can be used indirectly. There can be various types of utilities like economic utility, marginal utility, cardinal utility, form utility.

Question

A consumer consumes two goods and her utility is form by Cobb-Douglas utility function. Her MRS is 0.9 * (q2/q1) Using these information find Marginal utility levels of first amd second goods

Definition Definition Satisfaction derived from the consumption of an additional unit of any commodity.

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