Multiple Choice
Suppose for some utility function that MUx = 5y and MUy = 7x
A) The assumption that more is better is satisfied for both goods.
B) This utility function will violate the assumption that preferences are complete.
C) The indifference curves for this utility function will be straight lines with a slope of -1.
D) The indifference curves will have a diminishing marginal rate of substitution.
Correct Answer:
Verified
Correct Answer:
Verified
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