Show that each of these has a diminishing mrs but that they
Consider the following utility functions:
a. U(x,y)=xy
b. U(x,y)=x^2y^2
c. U(x,y)= lnx+lny
Show that each of these has a diminishing MRS but that they exhibit constant, increasing, and decreasing marginal utility, respectively. What do you conclude?
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