Question 2 2 pts Consider the utility function u(x1, x2)= x x Calculate the marginal utility...

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business economics

Answer 1

Answer #1

U(x₁ , x₂) = x₁⁷x₂⁸

$\partial$ U/ $\partial$ x₂ = MUx₂ = 8x₁⁷x₂^8
-1

MUx₂ = 8x₁⁷x₂⁷

Thus marginal utility for good 2 is

MUx₂ = 8x₁⁷x₂⁷

Therefore option (iv) is correct.

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Answer 2

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