Sofia's utility is a function of golf (G) and music lessons (M), where MU_G = 1/G and MU_M = 1/M. What is the equation for the marginal rate of substitution of music lessons for golf (MRS_GM)? A) GM B) M/G C) G/M D) M - G

Name: Sofia's utility is a function of golf (G) and music lessons (M), where MU G = 1/G and MU M = 1/M. What is the equation for the marginal rate of substitution of music lessons for golf (MRS GM )? A) GM B) M/G C) G/M D) M - G
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Question

Quizplus · Accepted Answer

MRS_GM = MU_G / MU_M = (1/G) / (1/M) = M/G

Sofia's Utility Is a Function of Golf (G) and Music