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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
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