Problem
Carlos has a utility function that depends on the number of musicals and the number of operas seen each month. His utility function is given by U = xy2 , where x is the number of movies seen per month and y is the number of operas seen per month. The corresponding marginal utilities are given by: MUx = y2 and MUy = 2xy.
a) Does Carlos believe that more is better for each good?
b) Does Carlos have a diminishing marginal utility for each good?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.