Question: True or False: Sofia requires a minimum level of consumption, a threshold if you like, to derive additional utility. For goods X and Z, Sofia's

True or False:

Sofia requires a minimum level of consumption, a threshold if you like, to derive additional utility. For goods X and Z, Sofia's preferences admit the following utility function: U(X,Z) = 0 if X + Z 10 and U(X,Z) = X + Z otherwise Sofia's preferences are hard to rationalize economically because they violate the transitive property.

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