Suppose that the following utility function is given U(X,Y) = X//3y1/2, which of the following is correct? OWe have convex preferences since Law of diminishing Marginal Rate of Substitution holds and indifference curves are bowed inward towards the origin OWe have convex preferences since Law of diminishing Marginal Utility holds and indifference curves are bowed outward from the origin OWe have convex preferences since Law of diminishing Marginal Rate of Substitution fails to hold and indifference curves are bowed inward towards the
Suppose that the following utility function is given U(X,Y) = X//3y1/2, which of the following is correct? OWe have convex preferences since Law of diminishing Marginal Rate of Substitution holds and indifference curves are bowed inward towards the origin OWe have convex preferences since Law of diminishing Marginal Utility holds and indifference curves are bowed outward from the origin OWe have convex preferences since Law of diminishing Marginal Rate of Substitution fails to hold and indifference curves are bowed inward towards the
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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