A. the marginal utility depends on the average of the goods B. the total utility depends on the sum of the goods C. the marginal rate substitution for the function depends only on the ratio of the amount of the two goods D. the MRS for the function depends on the total quantities of the two goods
Correct Answer: C
Explanation
A homothetic function is the one expressed as a ratio of the prices of the two goods. If it is the sum or absolute value of one it is non-homothetic.