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A Fully Additive Model of the Utility Function U(c1,i,c2,i)U\left(c_{1, i}, c_{2, i}\right)

Question 18

Multiple Choice

A fully additive model of the utility function U(c1,i,c2,i) U\left(c_{1, i}, c_{2, i}\right) , where ii indexes time and c1c_{1} and c2c_{2} are two different goods, has which features?


A) Utility is additive across ii (time) .
B) Utility is additive across goods 1 and 2, but not across ii (time) .
C) Utility is neither additive across goods or time.
D) Utility is additive across ii (time) , but the function form may change in each time period.

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