Compute the MRS for the Following Utility Functions

question 23

Essay

Compute the MRS for the following utility functions:
a.U(X,Y)= aln(X)+ bln(Y),
b.U(X,Y)=XᵃYᵇ,and
c.U(X,Y)=aX + bY,
where a and b are strictly positive constants.

---

Definitions:

Access to Credit

The ability of individuals or businesses to borrow money in order to purchase goods, invest, or expand operations, often influenced by creditworthiness.

Sue

The act of bringing a legal action against an individual or entity in a court of law.

Formal Education

Structured education that takes place in an institutional setting like schools or colleges, following a set curriculum leading to recognized qualifications.

Colonial Girls

Young females living in a colony, especially during the period when the area was under the control of a colonial power.