Consumers utility function


Problem: The consumer's utility function is U=4 square root of X1 + X2. This means that the MRS at the bundle (x1, x2) is 2/square root of X1. Show that the individual's indifference curves have the diminishing MRS property.

Solution Preview :

Prepared by a verified Expert
Macroeconomics: Consumers utility function
Reference No:- TGS01745969

Now Priced at $20 (50% Discount)

Recommended (97%)

Rated (4.9/5)