- #1
namy77
- 2
- 0
1. Utility function of an individual: [tex]U=U(x_1,x_2)=(x_1 +2 )^2 (x_2=3)^3[/tex]
Where [tex]x_1 and x_2[/tex] are the quantities of two commodities consumed.
2. Question: FInd the marginal-utility function of each of the commodities and the value of the marginal utility of the first commodity when 3 units of each commodity are consumed.
My attempt:
[tex] dU = f_{x1} dx_1 + f_{x2} dx_2
= 2(x_2 + 3) ^2 (x_1 + 2) dx_1 + 3 (x_1 + 2)^2 (x_2 + 3)^3 dx_2[/tex]
For the latter question: I plugged in: [tex] x_1 = 3 = x_2 [/tex] and the result is 3060 utils... this sounds awfully lot - am I doing anything wrong? Thanks
Where [tex]x_1 and x_2[/tex] are the quantities of two commodities consumed.
2. Question: FInd the marginal-utility function of each of the commodities and the value of the marginal utility of the first commodity when 3 units of each commodity are consumed.
My attempt:
[tex] dU = f_{x1} dx_1 + f_{x2} dx_2
= 2(x_2 + 3) ^2 (x_1 + 2) dx_1 + 3 (x_1 + 2)^2 (x_2 + 3)^3 dx_2[/tex]
For the latter question: I plugged in: [tex] x_1 = 3 = x_2 [/tex] and the result is 3060 utils... this sounds awfully lot - am I doing anything wrong? Thanks