Jackie has a Cobb-Douglas utility function, U= q1a q21-a where q1 is the number of tracks of recorded music she buys a year, and q2 is the number of live music events she attends. What is her marginal rate of substitution?
1.) Determine the marginal utility Jackie gets from extra music tracks and the marginal utility she derives from more live music.
2.) Express her marginal rate of substitution in terms of her marginal utilities.
Can anyone explain the step-by-step full explanation of this problem? This is out of my textbook and I just don't understand how they are arranging the formulas or anything. I figured someone with a bit more practice might beable to help a bit more. Thank you
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