4B. Which one(s) of the following functionsv(x, y) = 2x°y – 100, w(x, y) = 3(x + y) + 120, t(x, y) = xy - 150is an ordinal utility function for a preference relation which admits u(x, y) =3x/2y1/2 + 120 as an utility function?(a) w only(b) v and w(c) v and t(d) v, w and t(e) none of the previous four statements is correct.%3D%3!

Ordinal Utility functions are those which represent the order/ ranking of consumption bundles based…

4B. Which one(s) of the following functions v(x, y) = 2x°y³ – 100, w(x, y) = 3(¤ +y) + 120, t(x, y) = Jay-150 is an ordinal utility function for a preference relation which admits u(r, y) = 1/2y1/2 + 120 as an utility function? (a) w only (b) v and w (c) v and t (d) v, w andt

4B. Which one(s) of the following functions v(x, y) = 2x°y³ – 100, w(x, y) = 3(¤ +y) + 120, t(x, y) = Jay-150 is an ordinal utility function for a preference relation which admits u(r, y) = 1/2y1/2 + 120 as an utility function? (a) w only (b) v and w (c) v and t (d) v, w andt

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter3: Preferences And Utility

Section: Chapter Questions

Problem 3.2P

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Concept explainers

Form Utility

The term utility in general refers to the satisfaction earned from usage of a particular product or service. Utility always plays an important role because it influences various important elements like demand & thereby the price of the good or service as well. Though utility is not easy to measure, various types of economic models can be used indirectly. There can be various types of utilities like economic utility, marginal utility, cardinal utility, form utility.

Question

4B. Which one(s) of the following functions
v(x, y) = 2x°y – 100, w(x, y) = 3(x + y) + 120, t(x, y) = xy - 150
is an ordinal utility function for a preference relation which admits u(x, y) =
3x/2y1/2 + 120 as an utility function?
(a) w only
(b) v and w
(c) v and t
(d) v, w and t
(e) none of the previous four statements is correct.
%3D
%3!

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