Bob has a utility function U(x, y) = √√x₁ +0.8√x2 +0.64√x3 over his incomes x1, x2, x3 in the next three years. This function is an example of expected utility quasi-hyperbolic utility function O discounted utility none of the above

Bob has a utility function U(x, y) = √√x₁ +0.8√x2 +0.64√x3 over his incomes x1, x2, x3 in the next three years. This function is an example of expected utility quasi-hyperbolic utility function O discounted utility none of the above

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter4: Utility Maximization And Choice

Section: Chapter Questions

Problem 4.8P

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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

Bob's utility function implies O time stationarity O transitivity O impatience O all of the above

I need help with the questions

Bob has a utility function U (x, y) = /x1 +0.8₁√x2 +0.64√√x3 over his incomes x₁, x2, X3
in the next three years.
This function is an example of
expected utility
quasi-hyperbolic utility function
discounted utility
none of the above

Which of the following preferences agree with Bob's utility?
(9, 10, 11) > (9, 10, 12)
○ (9, 10, 11) > (11, 10, 9)
(9, 10, 11) > (9, 11, 10)
none of the above

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