Question

QUESTION 4. Consider the utility function U (z,y) = 2x^{0.5}y^{0.5} for Fred over the consumption goods clothing (x) and food (y). (a) Derive the marginal utility of clothing MU$_x$ and the marginal utility of food MU$_y$ (b) Now focus on the marginal utility of clothing MU$_x$ derived in (a). Does Fred has a diminishing marginal utility of clothing? (That is, if we fix the quantity of food (y), does the function value MU$_x$ decrease as we increase the quantity of clothing x?) (c) Using the marginal utility functions derived in (a) to find out the mathematical expression of MRS$_{x,y}$? (d) Do Fred's preferences satisfy the monotonicity property over both clothing (x) and food (y)? Why?

          QUESTION 4. Consider the utility function U (z,y) = 2x^{0.5}y^{0.5} for Fred over the consumption
goods clothing (x) and food (y).
(a) Derive the marginal utility of clothing MU$_x$ and the marginal utility of food MU$_y$
(b) Now focus on the marginal utility of clothing MU$_x$ derived in (a). Does Fred has a diminishing marginal
utility of clothing? (That is, if we fix the quantity of food (y), does the function value MU$_x$ decrease
as we increase the quantity of clothing x?)
(c) Using the marginal utility functions derived in (a) to find out the mathematical expression of MRS$_{x,y}$?
(d) Do Fred's preferences satisfy the monotonicity property over both clothing (x) and food (y)? Why?

QUESTION 4. Consider the utility function U (z,y) = 2x^0.5y^0.5 for Fred over the consumption
goods clothing (x) and food (y).
(a) Derive the marginal utility of clothing MUx and the marginal utility of food MUy
(b) Now focus on the marginal utility of clothing MUx derived in (a). Does Fred has a diminishing marginal
utility of clothing? (That is, if we fix the quantity of food (y), does the function value MUx decrease
as we increase the quantity of clothing x?)
(c) Using the marginal utility functions derived in (a) to find out the mathematical expression of MRSx,y?
(d) Do Fred's preferences satisfy the monotonicity property over both clothing (x) and food (y)? Why?

Added by Sandra D.

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