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Can someone help me with the derivatives and the respective MRS with the questions in the image?
![Attachment image](https://s.yimg.com/tr/i/89deac112dea4f7f91686b4e6bc9515b_A.jpeg)
1 Answer
- Anonymous2 years agoFavorite Answer
The marginal rate of substitution (MRS) equals the ratio of the marginal utilities with a minus sign.1.
Can’t read your diagram (blurred) but I think this is what is needed...
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1.
MU of X₁ = 4
MU of X₂ = 6
MRS = -4/6 = -2/3 = -0.667
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2.
MU of X₁ = a
MU of X₂ = b
MRS = -a/b
__________________________
3.
MU of X₁ = 1/X₁
MU of X₂ = 1
MRS = -(1/X)/1 = -1/X
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4.
MU of X₁ = X₂
MU of X₂ = X₁
MRS = -X₂/X₁
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5
MU of X₁ = aX₁ᵃ⁻¹X₂ᵇ
MU of X₂ = bX₂ᵇ⁻¹X₁ᵃ
MRS = -(aX₁ᵃ⁻¹X₂ᵇ)/(bX₂ᵇ⁻¹X₁ᵃ)
We can simplify this because Xⁿ / Xⁿ⁻¹ = X. E,g. 10⁴/10³ = 10
MRS = -(aX₂)/(bX₁)
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6
MU of X₁ = aX₁ᵃ⁻¹
MU of X₂ = bX₂ᵇ⁻¹
MRS = -(aX₁ᵃ⁻¹)/(bX₂ᵇ⁻¹)