Given the Utility Function U(x₁,x₂)= Min(x₁,x₂), the Marginal Rate of Substitution

question 99

Multiple Choice

Given the utility function U(x₁,x₂) = min(x₁,x₂) , the marginal rate of substitution when x₁ exceeds
X₂ is:

• A)undefined.
• B)one.
• C)zero.
• D)infinite.

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Definitions:

Additive Manufacturing

A process of creating three-dimensional objects by adding layer upon layer of material, commonly referred to as 3D printing.

Economies of Scale

The cost advantages that enterprises obtain due to their scale of operation, resulting in cost per unit of output decreasing with increasing scale.

3-D Printers

Technology that creates three-dimensional objects from digital models by layering materials.

Explicit Costs

The direct payment costs to others in the course of running a business or undertaking an economic transaction.