If someone has the utility function , then  and  are perfect complements for that person.Question 25Select one:TrueFalse

To determine whether the statement is true or false, we need to understand what is meant by "perfect complements" in the context of utility functions.

Perfect Complements

1. Definition: Perfect complements refer to goods that are consumed together in fixed proportions. In terms of a utility function, this usually implies that the utility derived from two goods can be represented as a minimum function: $U(x, y) = \min(ax, by)$ where $x$ and $y$ are the quantities of the two goods, and $a$ and $b$ are positive constants representing the fixed proportions.

2. Utility Function Analysis: If the given utility function is indeed of the form $U(x, y) = \min(ax, by)$, then $x$ and $y$ are perfect complements. If the utility function deviates from this structure, they would not be categorized as perfect complements.

Conclusion

Without the specific utility function provided in the question, we cannot definitively conclude whether the statement is true or false. If the utility function is in the standard form of a minimum function as described, then the answer would be True. If it does not adhere to this format, the answer would be False.

Since we lack the specific utility function, it's important to consider whether it aligns with the definition of perfect complements.

Final Answer

The correct answer depends on the specific form of the utility function mentioned. If it follows the pattern for perfect complements, then True; otherwise, False.