A positive monotonic transformation of a utility function preserves a. diminishing marginal utilities. b. diminishing marginal rate of substitution. c. concavity of the utility function in consumption of each good. d. All of the above

A positive monotonic transformation of a utility function preserves a. diminishing marginal utilities. b. diminishing marginal rate of substitution. c. concavity of the utility function in consumption of each good. d. All of the above

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter6: Consumer Choice And Demand

Section: Chapter Questions

Problem 6QFR

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Question

A positive monotonic transformation of a utility function preserves

a. diminishing marginal utilities.

b. diminishing marginal rate of substitution.

c. concavity of the utility function in consumption of each good.

d. All of the above

Definition Definition Satisfaction derived from the consumption of an additional unit of any commodity.

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