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ECON3200001.1251 Quiz 6: Marginal Utility and Uncertainty

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Consider the following quasi-linear utility function: U = ln(x) + 5y We can say: MUx [選擇] does not change decreases increases with y and [選擇] decreases does not change increases with x. MUy [選擇] increases decreases does not change with y and does not change with x.

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The question is asking about how the marginal utilities change when x or y changes, given the quasi-linear utility U = ln(x) + 5y. First, compute the marginal utilities: - MUx = ∂U/∂x = 1/x. This shows how utilities change as x varies while y is held constant. - MUy = ∂U/∂y = ......Login to view full explanation

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