Derivations for marginal utility

Reference no: EM1316171

Suppose an individual has a utility function u(x1, x2)= (x1)^(1/2) (x2)^(1/2). Present your mathematical expressions below in the simplest form you can.

a) Derive an expression for the marginal utility of good 1, and for the marginal utility of good 2.

b) Using these, solve for an expression describing the slope of an indifference curve: MRS(x1,x2).

c) Sketch indifference curves for this consumer corresponding to u=0,10,20.(Hint: (x1)^(1/2) (x2)^(1/2)=k solves for (x2)^(1/2)=k/( x1)^(1/2)........Solve this expression and approximate it on a graph for the three values of k.)

Reference no: EM1316171

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