Derive an expression for the marginal utility of good 1 and, Ask an Expert

Economics

Suppose an individual has a utility function u(x1, x2)= (x1)^(1/2) (x2)^(1/2). Present your mathematical expressions below in the simplest form you can.

a) Derive an expression for the marginal utility of good 1, and for the marginal utility of good 2.

b) Using these, solve for an expression describing the slope of an indifference curve: MRS(x1,x2).

c) Sketch indifference curves for this consumer corresponding to u=0,10,20.(Hint: (x1)^(1/2) (x2)^(1/2)=k solves for (x2)^(1/2)=k/( x1)^(1/2)........Solve this expression and approximate it on a graph for the three values of k.)

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Macroeconomics, Economics

Category:- Macroeconomics
Reference No.:- M9166548

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