10) Suppose that the utility function of an individual can be described as U(X,Y) = 4X + 2Y. For this utility function the MRS A) is always X*Y B) is always constant C) is always X/Y D) is always X+Y E) is always X-Y.
10) Suppose that the utility function of an individual can be described as U(X,Y) = 4X + 2Y. For this utility function the MRS A) is always X*Y B) is always constant C) is always X/Y D) is always X+Y E) is always X-Y.
Chapter3: Preferences And Utility
Section: Chapter Questions
Problem 3.11P
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10) Suppose that the utility function of an individual can be described as U(X,Y) = 4X +
2Y. For this utility function the MRS
A) is always X*Y
B) is always constant
C) is always X/Y
D) is always X+Y
E) is always X-Y.
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