The Utility Function for a Consumer Is U = XY/(X

question 36

Essay

The utility function for a consumer is U = XY/(X + Y), where the MU_X = Y²/(X + Y)² and MU_Y = X²/(X + Y)².
a. What is the slope of the indifference curve when X = 3.75 and Y = 3.75?
b. What is the marginal rate of substitution when X = 4 and Y = 16?

---

Definitions:

Employee Behavior

Employee behavior encompasses the actions and conduct of individuals within a workplace, affecting productivity and workplace atmosphere.

Human Resource Department

The division within a business that is charged with overseeing employee benefits, recruitment, training, and compliance with labor laws.

Stock Options

A type of compensation provided by companies to employees in the form of equity, giving the employee the right to buy shares at a set price.

Exercise Price

The predetermined price at which the holder of an option can buy or sell the underlying asset.