Suppose Your Utility from Consuming X and Y Is Expressed

question 69

Multiple Choice

Suppose your utility from consuming X and Y is expressed as u(X,Y) = ln(XY) where ln() is the natural logarithm operator. Given this information, which of the following statements is NOT true?

• A) The marginal utility of X may be positive or negative (depending on the quantity of X and Y consumed).
• B) The marginal utility of X does not depend on the quantity of Y consumed.
• C) The marginal utility of Y does not depend on the quantity of X consumed.
• D) All of these statements are not true.

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Definitions:

Book Value

The net value of a company's assets minus its liabilities, often used as an estimate of an asset's value if it were to be liquidated.

Accrued Property Taxes

Property taxes that have been incurred but not yet paid, typically recorded as a liability on the balance sheet.

Cost of Land

The purchase price and all associated costs, such as legal fees and surveying, of acquiring land for business use.

Asset's Cost

The total amount of money or the value exchanged to acquire, maintain, improve, or replace an asset.