For the utility function U(X,Y) = X^0.75Y^0.25, the marginal utility of Y is: A) 0.75X^0.75Y^0.25. B) 0.25X^0.75Y^0.25. C) 0.75X^-0.25Y^0.25. D) 0.25X^0.75Y^-0.75.

Question

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The marginal utility of Y is obtained by taking the partial derivative of the utility function U(X,Y) with respect to Y. The coefficient of Y in the utility function is 0.25, indicating the power to which Y is raised. When differentiating with respect to Y, this exponent comes down as a coefficient, and the exponent of Y is reduced by one, resulting in the expression in option D.

For the Utility Function U(X,Y) = X0

For the Utility Function U(X,Y) = X⁰