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Which of the following statements is true about the utility function: U(A, B) = A³+ B4, where good A is measured on the horizontal axis? O The MRS is 44²; the utility function will be convex to the origin, indicating that averages are better than extremes; the MRS will fall in absolute value as we move down the indifference curve. 383 O The MRS is 34²; the utility function will be concave to the origin, indicating that extremes are better than averages; the MRS will rise in absolute value as we move down the indifference 483 curve. The MRS is 3A² + 4B3; the utility function will be convex to the origin, indicating that averages are better than extremes; the MRS will fall in absolute value as we move down the indifference curve. O The MRS is 3A + 4B; the utility function will be concave to the origin, indicating that extremes are better than averages; the MRS will remain constant in absolute value as we move down the indifference curve. O The MRS is 34; the utility function will be concave to the origin, indicating that extremes are better than averages; the MRS will rise in absolute value as we move down the indifference 48 curve. O No answer

Which of the following statements is true about the utility function: U(A, B) = A³+ B4, where good A is measured on the horizontal axis? O The MRS is 44²; the utility function will be convex to the origin, indicating that averages are better than extremes; the MRS will fall in absolute value as we move down the indifference curve. 383 O The MRS is 34²; the utility function will be concave to the origin, indicating that extremes are better than averages; the MRS will rise in absolute value as we move down the indifference 483 curve. The MRS is 3A² + 4B3; the utility function will be convex to the origin, indicating that averages are better than extremes; the MRS will fall in absolute value as we move down the indifference curve. O The MRS is 3A + 4B; the utility function will be concave to the origin, indicating that extremes are better than averages; the MRS will remain constant in absolute value as we move down the indifference curve. O The MRS is 34; the utility function will be concave to the origin, indicating that extremes are better than averages; the MRS will rise in absolute value as we move down the indifference 48 curve. O No answer

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Which of the following statements is true about the utility function: U(A, B) = A³ + B4, where good A is measured on the horizontal axis? O The MRS is 44²; the utility function will be convex to the origin, indicating that averages are better than extremes; the MRS will fall in absolute value as we move down the indifference curve. 38³ The MRS is 343; the utility function will be concave to the origin, indicating that extremes are better than averages; the MRS will rise in absolute value as we move down the indifference curve. The MRS is 3A² + 4B³; the utility function will be convex to the origin, indicating that averages are better than extremes; the MRS will fall in absolute value as we move down the indifference curve. O The MRS is 3A + 4B; the utility function will be concave to the origin, indicating that extremes are better than averages; the MRS will remain constant in absolute value as we move down the indifference curve. O The MRS is 34; the utility function will be concave to the origin, indicating that extremes are better than averages; the MRS will rise in absolute value as we move down the indifference 4B curve. O No answer
Transcribed Image Text:Which of the following statements is true about the utility function: U(A, B) = A³ + B4, where good A is measured on the horizontal axis? O The MRS is 44²; the utility function will be convex to the origin, indicating that averages are better than extremes; the MRS will fall in absolute value as we move down the indifference curve. 38³ The MRS is 343; the utility function will be concave to the origin, indicating that extremes are better than averages; the MRS will rise in absolute value as we move down the indifference curve. The MRS is 3A² + 4B³; the utility function will be convex to the origin, indicating that averages are better than extremes; the MRS will fall in absolute value as we move down the indifference curve. O The MRS is 3A + 4B; the utility function will be concave to the origin, indicating that extremes are better than averages; the MRS will remain constant in absolute value as we move down the indifference curve. O The MRS is 34; the utility function will be concave to the origin, indicating that extremes are better than averages; the MRS will rise in absolute value as we move down the indifference 4B curve. O No answer
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