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Suppose for a Utility Function That the Marginal Utility for Good

Question 77

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Suppose for a utility function that the marginal utility for good is given by MUx=5y2/x\mathrm { MUx } = 5 \mathrm { y } 2 / \mathrm { x } . Which of the following is correct?


A) The more is better assumption is not satisfied for in this utility function.
B) The more is better assumption is satisfied for in this utility function.
C) This shows a positive and increasing marginal utility of x.
D) The marginal rate of substitution must be diminishing.

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