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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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