A Consumer Has a Utility Function Given by U =

question 53

True/False

A consumer has a utility function given by U = min{x₁, 2x₂}.If good 2 has a price of zero, the consumer will always prefer more of good 2 to less.

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Definitions:

Nonexcludable

Nonexcludable goods are those that cannot feasibly or reasonably be kept from individuals who do not pay for them, one of the characteristics of public goods.

Nonrival

A characteristic of a good whereby one person's consumption does not prevent or decrease the ability of others to enjoy it as well.

Private Good

A product or service that is consumed by a single individual or household and cannot be used or consumed by others simultaneously.

Pizza

A popular Italian dish consisting of a usually round, flat base of leavened wheat-based dough topped with tomatoes, cheese, and often various other ingredients, which is then baked at a high temperature.