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ECO - Preferences and Utility

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Question;Preferences and Utility1. Consider the Cobb Douglass utility function U(X, Y) = X^(1/6)Y^(5/6) of a typical student. X denotes time spent studying and Y denotes time spent socializing. Use calculus in your answer.A. Is the ?more is better? assumption satisfied for both goods?B. Is there diminishing marginal utility for both goods?C. Is there a diminishing marginal rate of substitution?

 

Paper#56833 | Written in 18-Jul-2015

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