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If Utility Function is Expressed as U(x,y) = x^0.5 y^0.5 What is the Marginal Utility at Point (64,25) and (49,36)? Treat Y as a Constant. Would the Answer be MUx(x,y) = y. MUx(64,25) = 5 ? and MUx(49,36) = 6?

Tuesday, September 7th, 2010

Solution:

MUx(x,y) =     Derivative of U(x,y), treating y constant.

MUx(64,25) =

MUx(49,36) =

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