Which one of the following statements about preferences is true? O The MRS for perfect complements can be either positive or negative but never zero. O The income expansion path must always be linear. O If a utility function is homogenous of degree 0 then the preferences must also be homothetic. O The utility function u = a ln(x₁) + b ln(x₂) represents the same preferences as u = xix when x₁ > 0 and x2 > 0. O A consumer with linear indifference curves must strictly prefer averages to extremes. O No Answer

Which one of the following statements about preferences is true? O The MRS for perfect complements can be either positive or negative but never zero. O The income expansion path must always be linear. O If a utility function is homogenous of degree 0 then the preferences must also be homothetic. O The utility function u = a ln(x₁) + b ln(x₂) represents the same preferences as u = xix when x₁ > 0 and x2 > 0. O A consumer with linear indifference curves must strictly prefer averages to extremes. O No Answer

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter4: Utility Maximization And Choice

Section: Chapter Questions

Problem 4.13P

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