Suppose That a Consumer Has Utility Function $\mathrm { U } = \mathrm { Ax } 2 \mathrm { y } 2$

question 34

Multiple Choice

Suppose that a consumer has utility function $\mathrm { U } = \mathrm { Ax } 2 \mathrm { y } 2$ with $\mathrm { MUx } = 2 \mathrm { Ay } 2 \mathrm { x }$ and $\mathrm { MUy } = 2 \mathrm { Ax } 2 \mathrm { y }$ . Which of the following statements is false?

• A)The marginal utilities are positive.
• B)The marginal rate of substitution is diminishing.
• C)The indifference curves are bowed away from the origin.
• D)The indifference curves are downwards sloping.

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