Suppose that a consumer has utility function U(x, y) with MU_x = 5y²x and MU_y = 2x²y. What is the marginal rate of substitution? A) 10y³x³ B) 2x/5y C) 5y/2x D) 5y²x²

Name: Suppose that a consumer has utility function U(x, y) with MU x = 5y 2 x and MU y = 2x 2 y. What is the marginal rate of substitution? A) 10y 3 x 3 B) 2x/5y C) 5y/2x D) 5y 2 x 2
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Question

Quizplus · Accepted Answer

The marginal rate of substitution (MRS) is the ratio of the marginal utilities, MUx/MUy, which is (5y^2x)/(2x^2y) = 5y/2x.

Suppose That a Consumer Has Utility Function U(x, Y) with MUx

Suppose That a Consumer Has Utility Function U(x, Y) with MU_x