Consider the following utility function: U(x, y) = = xy x-y (a) Derive the MRS of x to y. Show your work. (b) Is this function quasi-concave? [Hint. You need to check the conditions for quasi-concavity].
Consider the following utility function: U(x, y) = = xy x-y (a) Derive the MRS of x to y. Show your work. (b) Is this function quasi-concave? [Hint. You need to check the conditions for quasi-concavity].
Chapter3: Preferences And Utility
Section: Chapter Questions
Problem 3.3P
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![Consider the following utility function:
ху
υ(x, y)
х —у
(a) Derive the MRS of x to y. Show your work.
(b) Is this function quasi-concave? [Hint. You need to check the conditions for quasi-concavity].](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff3becf8c-6a49-4334-a171-fa88d1fa51e6%2F6c071acc-9d98-4fad-b01c-c5a5e69f3d5b%2Frglczma_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Consider the following utility function:
ху
υ(x, y)
х —у
(a) Derive the MRS of x to y. Show your work.
(b) Is this function quasi-concave? [Hint. You need to check the conditions for quasi-concavity].
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