Individuals derive utility from picnics, p, and kayak trips, k. Assuming that an individual's utility is U(p,k)= k^0.5p^0.5and income is $100, what is the marginal rate of substitution (MRS)between picnics and kayak trips? A)MRS = 1. B)MRS = -1. C)MRS = - D)There is no substitution because picnics and kayak trips are perfect complements.

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The Answer of Individuals derive utility from picnics, p, and kayak trips, k. Assuming that an individual's utility is U(p,k)= k^0.5p^0.5and income is $100, what is the marginal rate of substitution (MRS)between picnics and kayak trips? A)MRS = 1. B)MRS = -1. C)MRS = - D)There is no substitution because picnics and kayak trips are perfect complements.

Individuals Derive Utility from Picnics, P, and Kayak Trips, K