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Suppose for a Utility Function That the Marginal Utility for Good

Question 53

Multiple Choice

Suppose for a utility function that the marginal utility for good Suppose for a utility function that the marginal utility for good is given by MU<sub>x</sub> = 5y<sup>2</sup>/x 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. is given by MUx = 5y2/x


A) The more is better assumption is not satisfied for Suppose for a utility function that the marginal utility for good is given by MU<sub>x</sub> = 5y<sup>2</sup>/x 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. in this utility function.
B) The more is better assumption is satisfied for Suppose for a utility function that the marginal utility for good is given by MU<sub>x</sub> = 5y<sup>2</sup>/x 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. 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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