If the utility function (U)between bananas (B)and jam (J)can be represented as U(B,J)= 3ln(B)+4ln(J),what is the marginal rate of substitution (MRS)between bananas and jam?
A) 4B.
B) -3J/(4B).
C) 4/(3J).
D) 3B/J.

Question

Quizplus · Accepted Answer

The MRS is the negative ratio of the marginal utilities of the two goods. Here, MRS = -(dU/dB) / (dU/dJ) = -(3/B) / (4/J) = -3J/(4B).

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