4.12 (0) Joe Bob has a utility function given by u(x1, x2) = xỉ+2x1x2+ (a) Compute Joe Bob's marginal rate of substitution: MRS(x1, x2) (b) Joe Bob's straight cousin, Al, has a utility function v(x1,x2) = x2+x1. %3D Compute Al's marginal rate of substitution. MRS(r1, x2) =. %3D (c) Do u(x1, x2) and v(r1, r2) represent the same preferences? Can you show that Joe Bob's utility function is a monotonic transformation of Al's? (Hint: Some have said that Joe Bob is square.)
4.12 (0) Joe Bob has a utility function given by u(x1, x2) = xỉ+2x1x2+ (a) Compute Joe Bob's marginal rate of substitution: MRS(x1, x2) (b) Joe Bob's straight cousin, Al, has a utility function v(x1,x2) = x2+x1. %3D Compute Al's marginal rate of substitution. MRS(r1, x2) =. %3D (c) Do u(x1, x2) and v(r1, r2) represent the same preferences? Can you show that Joe Bob's utility function is a monotonic transformation of Al's? (Hint: Some have said that Joe Bob is square.)
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter6: Consumer Choice Theory
Section6.A: Indifference Curve Analysis
Problem 1SQP
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