Calculate the marginal rate of substitution

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Reference no: EM131789392

Question: Suppose the utility function for a consumer is given by U = 5XY. X is the amount of Good X and Y is the amount of Good Y.

A) Neatly sketch the utility function

B) Does this utility function exhibit diminishing marginal utility?

C) Calculate the marginal rate of substitution

D) Sketch two indifference curves based on the utility function above.

Reference no: EM131789392

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