Suppose That a Consumer Has Utility Function U= Ax 2 y 2 with

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Suppose That a Consumer Has Utility Function U= Ax 2 y 2 with

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Suppose That a Consumer Has Utility Function U= Ax²y²with

Question 16

Multiple Choice

Suppose that a consumer has utility function U= Ax²y²with MU_x = 2Ay²x and MU_y = 2Ax²y. Which of the following statements is false?

A) The marginal utilities are positive.
B) The marginal rate of substitution is diminishing.
C) The indifference curves are bowed away from the origin.
D) The indifference curves are downwards sloping.

Suppose That a Consumer Has Utility Function U= Ax2y2 with

Multiple Choice

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Suppose That a Consumer Has Utility Function U= Ax²y²with

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