Consider the utility function U= (x,y)= x^2 + y^2. Is MRS x,y diminishing, constant, or increasing as the consumer substitutes x for y along an indifference curve?
Consider the utility function U= (x,y)= x^2 + y^2. Is MRS x,y diminishing, constant, or increasing as the consumer substitutes x for y along an indifference curve?
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