Homework Answers
5.
Utility function:
1).
We can see that as x or y rises, utility rises. This satisfies "more is better".
2).
3).
We can see that as x rises, MRS falls (x being in denominator). MRS is diminishing.
4).
Since MRS is diminishing always, indifference curve is strictly convex.
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Please complete with steps. Thank you
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Please complete with steps. Thank you
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