3- Assuming that the equation F(U, x, x , Xn) = ****** = f(x1, x2,,.....,xn): 0.33 a) Find the expressions for 60, 60," 6x2 6x 6x2 = 0 implicitly defines a utilityfunction U and 6x4 6xn b) Interpret their respective economic meanings. c) Now. assume the utility function is U(x, y) = y√x. Does the consumer believe that more is better for each good? Do the consumer's preferences exhibit a diminishing marginal utility of x? Is the marginal utility of y diminishing?

3- Assuming that the equation F(U, x, x , Xn) = ****** = f(x1, x2,,.....,xn): 0.33 a) Find the expressions for 60, 60," 6x2 6x 6x2 = 0 implicitly defines a utilityfunction U and 6x4 6xn b) Interpret their respective economic meanings. c) Now. assume the utility function is U(x, y) = y√x. Does the consumer believe that more is better for each good? Do the consumer's preferences exhibit a diminishing marginal utility of x? Is the marginal utility of y diminishing?

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter6: Consumer Choice And Demand

Section: Chapter Questions

Problem 2.5P

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