(Figure: Utility Functions I) What, If Any, Property of Utility

question 103

Essay

(Figure: Utility Functions I) What, if any, property of utility functions is violated if:
a. the indifference curve goes through points A, C, and D?
b. the indifference curve goes through points B and E?
c. the indifference curve goes through points A, B, and D?

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Definitions:

Production Function

A technological relationship expressing the maximum quantity of a good attainable from different combinations of factor inputs.

Inputs

Resources used in the production process, including labor, capital, materials, and energy.

Marginal Output

The additional amount of output that is produced as a result of a one unit increase in the input of a production process.

Resource

Assets, materials, or inputs used to produce goods and services, including natural resources, human resources, and capital.