Calculate bobs marginal rate of substitution as a function


Suppose that Bob's preferences are given by U(L,C) = [α * log(L)] + [(1- α) * log(C)] with C equal to consumption, L equal to the number of leisure weeks, and the parameter α ranging between 0 and 1. Calculate Bob's marginal rate of substitution as a function of L,C, and α.

Solution Preview :

Prepared by a verified Expert
Microeconomics: Calculate bobs marginal rate of substitution as a function
Reference No:- TGS0948589

Now Priced at $20 (50% Discount)

Recommended (97%)

Rated (4.9/5)