Are the preferences represented by the utility function U (x, y) = 3x+2y homothetic?
Question
Solution 1
Yes, the preferences represented by the utility function U(x, y) = 3x + 2y are homothetic.
Here's why:
Homothetic preferences are those for which the marginal rate of substitution (MRS) is the same along any ray from the origin. In other words, if you multiply all goods by the same positive numbe Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study prob
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