+1 (347) 474-1028 info@essayparlour.com

The utility function of a consumer who consumes two products

Paper help Economics The utility function of a consumer who consumes two products

Economics

The utility function of a consumer who consumes two products

The utility function of a consumer who consumes two products (X1, X2) is: u(x1,x2)= x1x2 + 2×1 … Show more The utility function of a consumer who consumes two products (X1, X2) is: u(x1,x2)= x1x2 + 2×1 The consumer’s budget constraint is 4×1+2×2=60 You are required to: a) Find the expression for marginal utility from consuming each of the two products. b) Write the expression for the slope of the indifference curve (i.e., marginal rate of substitutions, which is the ratio of the two marginal utilities. c) Find the quantities of the two products that maximizes the consumer’s utility. • Show less

Order Now

Ready to try a high quality writing service? Get a discount here