For Ux1x2 6x113 x2 preferences are consistent with constan
For U(x1,x2) = 6x11/3 + x2, preferences are
consistent with constant marginal rate of substitution.
consistent with increasing marginal rate of substitution.
not consistent with a utility function.
consistent with diminishing marginal rate of substitution.
| a. | consistent with constant marginal rate of substitution. | |
| b. | consistent with increasing marginal rate of substitution. | |
| c. | not consistent with a utility function. | |
| d. | consistent with diminishing marginal rate of substitution. |
Solution
consistent with diminishing marginal rate of substitution.
| d. | consistent with diminishing marginal rate of substitution. |
