How many independent variables are there in a general utility function of the form U=h(x,y)Question 3Select one:a.3b.4c.2d.1

Break Down the Problem

1. Identify the variables in the utility function: The utility function provided is of the form $U = h(x, y)$, where $h$ is a function of $x$ and $y$.

Relevant Concepts

2. Understanding independent variables: In a function $h(x, y)$, the independent variables are the variables that can be changed freely without being affected by other variables in the function. Here, $x$ and $y$ both serve as independent variables contributing to the utility $U$.

Analysis and Detail

3. Examine the function structure: The function $h(x, y)$ explicitly has two inputs. Thus, examining the form of the function shows both $x$ and $y$ have the capacity to vary independently.

Verify and Summarize

4. Counting independent variables: Since we have clearly identified that there are two variables $x$ and $y$ that can be independently varied, we conclude that there are 2 independent variables in the utility function $U = h(x, y)$.

Final Answer

The number of independent variables in the general utility function $U = h(x, y)$ is c. 2.