Suppose that the following utility function is given U(X,Y) = x2+Y Which of the following is correct? We have non-convex preferences since Law of diminishing Marginal Rate of Substitution holds and indifference curves are bowed inward towards the origin We have convex preferences since Law of diminishing Marginal Utility holds and indifference curves are bowed outward from the origin We have convex preferences since Law of diminishing Marginal Rate of Substitution holds and indifference curves are bowed inward towards the origin

Suppose that the following utility function is given U(X,Y) = x2+Y Which of the following is correct? We have non-convex preferences since Law of diminishing Marginal Rate of Substitution holds and indifference curves are bowed inward towards the origin We have convex preferences since Law of diminishing Marginal Utility holds and indifference curves are bowed outward from the origin We have convex preferences since Law of diminishing Marginal Rate of Substitution holds and indifference curves are bowed inward towards the origin

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter3: Preferences And Utility

Section: Chapter Questions

Problem 3.2P

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