Question: Question 14 (6 points) Suppose that the following utility function is given U(X, Y) = x3 + Y3. Which of the following is correct? We

Question 14 (6 points) Suppose that the following utility function is given U(X, Y) = x3 + Y3. Which of the following is correct? We have convex preferences since Law of diminishing Marginal Utility holds and indifference curves are bowed outward from the origin 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 non-convex preferences since Law of diminishing Marginal Rate of Substitution fails to hold and indifference curves are bowed outward from the origin We have convex preferences since Law of diminishing Marginal Rate of Substitution fails to hold and indifference curves are bowed inward towards the origin

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