Suppose for Some Utility Function That MU_x = 5y and MU_y

question 59

Multiple Choice

Suppose for some utility function that MU_x = 5y and MU_y = 7x

• A) The assumption that more is better is satisfied for both goods.
• B) This utility function will violate the assumption that preferences are complete.
• C) The indifference curves for this utility function will be straight lines with a slope of -1.
• D) The indifference curves will have a diminishing marginal rate of substitution.

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