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2. Indifference Curves, MRS, and Utility Functions Consider the following 3 utility functions with good x and good y: u^A(x,y) = x^2?y u^B(x,y) = 2x - 1/2y u^C(x,y) = 4 ln x + ln y a. Find Marginal Utility (MUx and MUy) for each these utility functions. b. Is assumption that more is better satisfied for both goods in all of these utility functions? If not, specify for which function(s) and for which good(s) it is not satisfied. Hint: Check whether Marginal Utility is positive! If it is positive, then more is better assumption is satisfied. c. Does the marginal utility of each good diminish, remain constant, or increase as the consumer buys more for each of these functions? d. Calculate the MRSx,y for each of these utility functions.

          2. Indifference Curves, MRS, and Utility Functions
Consider the following 3 utility functions with good x and good y:
u^A(x,y) = x^2?y
u^B(x,y) = 2x - 1/2y
u^C(x,y) = 4 ln x + ln y
a. Find Marginal Utility (MUx and MUy) for each these utility functions.
b. Is assumption that more is better satisfied for both goods in all of these utility functions? If not, specify for which function(s) and for which good(s) it is not satisfied.
Hint: Check whether Marginal Utility is positive! If it is positive, then more is better assumption is satisfied.
c. Does the marginal utility of each good diminish, remain constant, or increase as the consumer buys more for each of these functions?
d. Calculate the MRSx,y for each of these utility functions.

2. Indifference Curves, MRS, and Utility Functions
Consider the following 3 utility functions with good x and good y:
u^A(x,y) = x^2?y
u^B(x,y) = 2x - 1/2y
u^C(x,y) = 4 ln x + ln y
a. Find Marginal Utility (MUx and MUy) for each these utility functions.
b. Is assumption that more is better satisfied for both goods in all of these utility functions? If not, specify for which function(s) and for which good(s) it is not satisfied.
Hint: Check whether Marginal Utility is positive! If it is positive, then more is better assumption is satisfied.
c. Does the marginal utility of each good diminish, remain constant, or increase as the consumer buys more for each of these functions?
d. Calculate the MRSx,y for each of these utility functions.

Added by Danielle J.

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