Advanced Engineering Mathematics
Advanced Engineering Mathematics
10th Edition
ISBN: 9780470458365
Author: Erwin Kreyszig
Publisher: Wiley, John & Sons, Incorporated
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An individuals utility function is given by
U = 900x₁ + 500x₂ + 6x₁x2 − x² − x²/2,
when the weekly amount of leisure is
X1 =
140 and earned income is x₂ = 800
answer the following:
1. The marginal utility of ₁ is
2. The marginal utility of 2 is
3. Use the small increments formula to estimate
the change in the utility when ₁ decreases by
1 and 2 increases by 4. The change
-
4. Does the law of diminishing marginal
utility hold?
5. The MRCS at a given values is
Enter non-integer numerical values as
decimals to at least 3 decimal
places. Note: you must use a . and not, for a
decimal point.
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Transcribed Image Text:An individuals utility function is given by U = 900x₁ + 500x₂ + 6x₁x2 − x² − x²/2, when the weekly amount of leisure is X1 = 140 and earned income is x₂ = 800 answer the following: 1. The marginal utility of ₁ is 2. The marginal utility of 2 is 3. Use the small increments formula to estimate the change in the utility when ₁ decreases by 1 and 2 increases by 4. The change - 4. Does the law of diminishing marginal utility hold? 5. The MRCS at a given values is Enter non-integer numerical values as decimals to at least 3 decimal places. Note: you must use a . and not, for a decimal point.
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