Order the answer to: Carlos has a utility function…
| Question | Carlos has a utility function that depends on the number of musicals and the number of operas seen each month. His utility function is given by U = xy2, where x is the number of movies seen per month and y is the number of operas seen per month. The corresponding marginal utilities are given by: MUx = y2 and MUy = 2xy. a) Does Carlos believe that more is better for each good? b) Does Carlos have a diminishing marginal utility for each good? |
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| Subject | business-economics |
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