If the utility function (U)between bananas (B)and jam (J)can be represented as U = 3ln(B)+4ln(J)the marginal utility of jam equals
A) 4B.
B) 3B/J.
C) 4/J.
D) B/J.

Question

Quizplus · Accepted Answer

The marginal utility of jam (MU_J) is found by taking the partial derivative of the utility function with respect to jam (J). The utility function is U = 3ln(B) + 4ln(J). The partial derivative with respect to J is dU/dJ = 4/J, which corresponds to option C.

If the Utility Function (U)between Bananas (B)and Jam (J)can Be