Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Which of the following(s) would be correct about the utility function given as(1, q2) = q1q2 + q1 (i) Indifference curves touch both axis (ii)

Which of the following(s) would be correct about the utility function given as(1, q2) = q1q2 + q1

(i) Indifference curves touch both axis

(ii) MRS is diminishing in good 1

(iii) Indifference curves only touch x-axis (horizontal axis)

(iv)MRS at point (3,2) will be 1.5.

(NOTE: please consider MRS as a positive number)

  • A.i, ii and iv
  • B.ii and iv
  • C.ii and iii
  • D.i and ii
  • E.i, ii and iii

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles of Microeconomics

Authors: N. Gregory Mankiw

8th edition

1305971493, 978-1305971493

More Books

Students also viewed these Economics questions

Question

1. Information that is currently accessible (recognition).

Answered: 1 week ago