Econ 101 11th

Econ 101 11th - The Slope at any point is on a indifference...

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Econ 101 11th Marginal utility is per apple. Marginal is just another word for derivative. . Each succeeding apple gives less benefit. Marginal utility is the difference. . (which on the graph is measured by the height. Utilility (U) = root Qa + root Qb Independent unrelated objects U= root(Qa.Qb) Substitute Utilities U=min(Qa,Qb) You have to consume these things together (the right shoe left shoe example)
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Unformatted text preview: The Slope at any point is on a indifference curve called the marginal rate of substitution. MRSab = -Qa/Qb =MUb/MUa Diminishing marginal Utility represents how much of one we are willing to give up of one object in exchange for another. Apple for bananas...
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This note was uploaded on 04/26/2010 for the course ECON 101 taught by Professor Staff during the Spring '08 term at Vassar.

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