Dan's utility function is given by (8.2 x₁ + 1.6x₂)² D(x1, x2) = Lan's utility function is given by L(x₁, x2) = x₁1.6 X₂8.2 where x; denotes the quantity consumed of good i, i =1, 2. Find and compare Dan's marginal rate of substitution (of good 1 in terms of good 2), MRSD, with Lan's marginal rate of substitution, MRSL, at the bundle where x₁ = 4.9 and x2 = 4.2. Then enter below the value of the ratio MRSD/MRSL. Remember every value must be entered below in decimal form.

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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.