Given a Utility Function $U = 3 A 2 B 3$

question 81

Multiple Choice

Given a utility function $U = 3 A 2 B 3$ , which of the following is true?

• A) \(\mathrm { MUA } = 3 \mathrm {~A} 2\)
• B) \(M U B = 9 A 2 B 2\)
• C) The marginal rate of substitution cannot be determined.
• D) The marginal utility for each good is negative.

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Definitions:

Accounts Receivable

Money owed to a business by its clients for goods or services delivered but not yet paid for.

Merchandise

Goods that are bought, sold, and traded within a retail or wholesale business environment.

Accounts Receivable

Represents money owed to a business by its customers for goods or services delivered but not yet paid for, usually recoverable within a short period, like 30, 60, or 90 days.

Merchandise

Goods that are bought and sold within the retail industry.