For U(x,y) = xy, MRS For U(x,y) = x2y², MRS = For U(x,y) = ln x + Iny, MRS = O True I MRS, while exhibiting False while Uxx = , while Uxx = MRS, while exhibiting MRS, while exhibiting and Uyy = marginal utility in x and y. ▼and Uyy = marginal utility in x and y. while Uxx = ▼and Uyy = marginal utility in x and y. . This means that this utility function has . This means that this utility function has True or False: If a utility function U exhibits diminishing MRS and constant marginal utility, then any monotonic transformation of U also exhibit diminishing MRS and constant marginal utility. This means that this utility function has
For U(x,y) = xy, MRS For U(x,y) = x2y², MRS = For U(x,y) = ln x + Iny, MRS = O True I MRS, while exhibiting False while Uxx = , while Uxx = MRS, while exhibiting MRS, while exhibiting and Uyy = marginal utility in x and y. ▼and Uyy = marginal utility in x and y. while Uxx = ▼and Uyy = marginal utility in x and y. . This means that this utility function has . This means that this utility function has True or False: If a utility function U exhibits diminishing MRS and constant marginal utility, then any monotonic transformation of U also exhibit diminishing MRS and constant marginal utility. This means that this utility function has
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:For U(x,y) = xy, MRS =
For U(x,y) = x2y2, MRS =
MRS, while exhibiting
For U(x,y) = ln x + ln y, MRS =
True
while Uxx =
False
MRS, while exhibiting
MRS, while exhibiting
while Uxx =
▼and Uyy
marginal utility in x and y.
=
and Uyy =
marginal utility in x and y.
, while Uxx =
and Uyy =
marginal utility in x and y.
. This means that this utility function has
. This means that this utility function has
True or False: If a utility function U exhibits diminishing MRS and constant marginal utility, then any monotonic transformation of U also exhibits
diminishing MRS and constant marginal utility.
This means that this utility function has
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