Solution-What''s the marginal rate of substitution at bundle

What''s the marginal rate of substitution at bundle

Reference no: EM131206533

Problem

Use a commodity space to draw the indifference curves for the following utilityfunction: U(x₁, x₂) = x₁x₂. Indicate in which direction the utility is increasing across the indifference curves.

What's the marginal rate of substitution (MRS) at bundle (1,4)? What is the MRS at bundle (4, 1)? Give an example of a bundle where the MRS is -1.

Reference no: EM131206533

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What''s the marginal rate of substitution at bundle : What's the marginal rate of substitution (MRS) at bundle (1,4)? What is the MRS at bundle (4, 1)? Give an example of a bundle where the MRS is -1.

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What''s the marginal rate of substitution at bundle

Reference no: EM131206533

Reference no: EM131206533

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