intermediate microeconomics - marginal utility and MRS

Marginal Utility



•Suppose that an individual has a utility function of the form

utility = U(x,y)


•The total differential of U is








sum of partial derivatives of U with respect to X and Y




Along any indifference curve, utility is constant (dU = 0)




Deriving the MRS











MRS is the ratio of the marginal utility of x to the marginal utility of y