Question: Suppose the utility function is V = exp(F) + T. Show that it does not satisfy the assumption of diminishing MRS (and therefore if you
Suppose the utility function is V = exp(F) + T. Show that it does not satisfy the assumption of diminishing MRS (and therefore if you plot the indifference curve, it will look concave to the origin).
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
