1) Explain the following: i. UTILITY ii. UTILITY FUNCTION iii. LAW OF DIMINISHING MARGINAL UTILITY. iv. Given a consumer has a money budget M = 360 and utility function U(X, Y)=X^(3/4)Y^(1/4). If she...

1) Explain the following:

i. UTILITY

ii. UTILITY FUNCTION

iii. LAW OF DIMINISHING MARGINAL UTILITY.

iv. Given a consumer has a money budget M = 360 and utility function U(X, Y)=X^(3/4)Y^(1/4). If she consumes two goods x and y with prices given by Px=10 and Py=30. Find the QUANTITIES of X and Y that MAXIMIZE her utility.