Suppose for a Utility Function That the Marginal Utility for Good

question 77

Multiple Choice

Suppose for a utility function that the marginal utility for good is given by $\mathrm { MUx } = 5 \mathrm { y } 2 / \mathrm { x }$ . Which of the following is correct?

• A)The more is better assumption is not satisfied for in this utility function.
• B)The more is better assumption is satisfied for in this utility function.
• C)This shows a positive and increasing marginal utility of x.
• D)The marginal rate of substitution must be diminishing.

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