Question
Asked Sep 15, 2019
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Jane’s utility function on bundles of two commodities (x,y) is given by: U(x,y)=4x2y3. What is the value of MRSxy(x,y) when x=2 and y=1?

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Expert Answer

Step 1

To calculate the value of Marginal Rate of Substitution.

Step 2

Given: U(x,y) = 4x²y³

MRS is the ratio of the Marginal Utility of x to the marginal utility of y.

Step 3

MRS is calculate...

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MU8xy MU12xy MRS=MU. MU, 12x*y? Зх 8хy? _2y

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