The utility function U = Y/X violates the assumption(s) of:
A) rankability.
B) completeness.
C) more is better.
D) rankability and completeness.

Question

Quizplus · Accepted Answer

The utility function U = Y/X implies that as X increases (holding Y constant), utility decreases, which violates the "more is better" assumption. This assumption posits that having more of a good or service increases a consumer's utility.

The Utility Function U = Y/X Violates the Assumption(s) Of