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Compute the MRS for the following utility functions. Based on your results, explain the curvature of indifference curve associated with each function.
i. U(X,Y) = aln(X) + bln(Y)
ii. U(X,Y) = XaYb
iii. U(X,Y) = aX + bY,
where a and b are strictly positive constants.
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A negative externality:
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