0
   

Economics Homework

 
 
Reply Sun 17 Feb, 2013 11:23 pm
Kelly's utility function is given by U=5X+2Y, where MUx=5 and MUy=2

What is MRSxy when X=1 and Y=5?
  • Topic Stats
  • Top Replies
  • Link to this Topic
Type: Question • Score: 0 • Views: 4,515 • Replies: 1
No top replies

 
lacroft
 
  1  
Reply Mon 15 Jul, 2013 06:19 pm
@vanitymdl,
MRSxy is (dU/dX)/(dU/dY)

In this case:
(dU/dX)/(dU/dY) = 5/2
because the utility function is linear.

MRSxy will be 2.5 no matter in which point of the utility curve we are.

Regards!
0 Replies
 
 

Related Topics

Who or What is Responsible? - Discussion by Merry Andrew
Debt ceiling? - Question by Buffalo
More Proof that HPQ SUCKS! - Discussion by hawkeye10
The Legacy of the Reagan Revolution - Discussion by Cycloptichorn
Let it crash - Discussion by FreeDuck
The Bush/Obunga Dark Age - Discussion by gungasnake
No real limits to growth - Discussion by gungasnake
Sovereign debt - Question by JohnJD
Wage discrimination - Question by zewittykitty
 
  1. Forums
  2. » Economics Homework
Copyright © 2022 MadLab, LLC :: Terms of Service :: Privacy Policy :: Page generated in 0.03 seconds on 01/18/2022 at 08:31:47