a Explanation The utility function is given below: U ( x , y ) = x y The marginal utility of good x and y for the utility function are given below: ∂ U ( x , y ) ∂ x = ∂ ( x y ) ∂ x ∂ U ( x , y ) ∂ x = U x U x = y ∂ U ( x , y ) ∂ = ∂ ( x , y ) ∂ y = x b) To determine Whether the given function shows diminishing MRS and increasing utility c) To determine Whether the given function shows diminishing MRS decreasing utility

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ISBN: 9781337517942

Author: NICHOLSON

Publisher: Cengage

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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…

Question

Chapter 3, Problem 3.3P

To determine

To prove: Whether the given function shows diminishing MRS and constant utility

To determine

Whether the given function shows diminishing MRS and increasing utility

To determine

Whether the given function shows diminishing MRS decreasing utility

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Chapter 3 Solutions

Microeconomic Theory

Ch. 3 - Prob. 3.1P Ch. 3 - Prob. 3.2P Ch. 3 - Prob. 3.3P Ch. 3 - Prob. 3.4P Ch. 3 - Prob. 3.5P Ch. 3 - Prob. 3.6P Ch. 3 - Prob. 3.7P Ch. 3 - Find utility functions given each of the following...Ch. 3 - Prob. 3.9P Ch. 3 - Prob. 3.10P

Ch. 3 - Prob. 3.11P Ch. 3 - Prob. 3.12P Ch. 3 - Prob. 3.13P Ch. 3 - Prob. 3.14P Ch. 3 - Prob. 3.15P

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Find utility functions given each of the following indifferencecurves [defined by U()=k ]: a. z=k1/x/y/ b. y=0.5x24(x2k)0.5x c. z=y44x(x2yk)2xy22x

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