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the utility function

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Solution Summary

Apply the utility function.

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Graphing a utility function with exponents and calculating Marginal Utility

a) With a utility function of U(S,A)= S^0.4*A^0.6, derive a set of data points for U=1 and then plot a graph to show this indifference curve. Hint: use maximum values of 9 apples (A) and 27 sandwiches (S).

b) When U=1, and using a maximum value of 27 sandwiches (S) and 9 apples (A), calculate the marginal utility of S and A.

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