Question

Using the utility function ?(?, ?) = 10 $VrewAAAABJRU5ErkJggg==$ – what is the marginal benefit of ?, i.e. the derivate of ? considering ?, if ? = 2 and ? = 2?

1. 20
2. 10
3. 5
4. None of the above

QUESTION VISIBLE: https://imgur.com/a/lyY2av5

Answer 1

Answer

Marginal Benefit of x means Marginal utility of x(MUx)

Here U = 10(xy)0.5

OU -= 10(0.5)(y/x)05

Now we have x = 2 and y = 2

au a = 10(0.5)(2/2)0.5 = 5

Hence, the correct answer is (c) 5.