1. Suppose that a consumer has utility function U= Ax2y2 with MUx = 2Ay2x and MUy = 2Ax2y.
Which of the following statements is false?
(A) The marginal utilities are positive.
(B) The marginal rate of substitution is diminishing.
(C) The indifference curves are bowed away from the origin.
(D) The indifference curves are downwards sloping.