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The slope of a utility function is:

a. positive and increasing.
b. positive and diminishing.
c. negative and increasing.
d. negative and diminishing.

User Carele
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Final answer:

In economics, the slope of a typical utility function is positive and diminishing, reflecting diminishing marginal utility.

Step-by-step explanation:

The slope of a utility function is often discussed in economics. In most typical cases, utility functions are assumed to have diminishing marginal utility, which means the satisfaction one gets from consuming additional units of a good or service decreases as the quantity consumed increases.

Therefore, although the utility function generally has a positive slope, indicating a positive relationship between the consumed quantity and utility, the slope is positive and diminishing. This reflects that as more of a good is consumed (moving to the right along the x-axis), the increase in utility (the upward movement on the y-axis) occurs at a decreasing rate.

User Chris Degnen
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