For the Utility Function U(X,Y) = X⁰

question 101

Multiple Choice

For the utility function U(X,Y) = X^0.5Y^0.5, the marginal rate of substitution MRS_XY is:

• A) 0.5Y/X.
• B) 0.5X/Y.
• C) X/Y.
• D) Y/X.