For the utility function U(X,Y) = 2X + 10Y, the marginal rate of substitution MRS_XY is: A) 1/5. B) 5. C) X/5Y. D) 5Y/X.

Question

Quizplus · Accepted Answer

The marginal rate of substitution (MRS) is the rate at which a consumer can give up some amount of one good in exchange for another good while maintaining the same level of utility. For the utility function U(X,Y) = 2X + 10Y, the MRS is the ratio of the marginal utility of X to the marginal utility of Y, which is 2/10 = 1/5.

For the Utility Function U(X,Y) = 2X + 10Y, the Marginal