Multiple Choice
Suppose for a utility function that the marginal utility for good x is given by MUx = 5y2/x
A) The more is better assumption is not satisfied for x in this utility function.
B) The more is better assumption is satisfied for x in this utility function.
C) This shows a positive and increasing marginal utility of x.
D) The marginal rate of substitution must be diminishing.
Correct Answer:
Verified
Correct Answer:
Verified
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