provide an example of prefrences that satisfy completness and transivity but do not admit a utility representation, and explain why this is so Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.

provide an example of prefrences that satisfy completness and transivity but do not admit a utility representation, and explain why this is so Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter8: Game Theory

Section: Chapter Questions

Problem 8.10P

See similar textbooks

Similar questions

In experimental studies, most participants adhere to the tenets of utility maximi: ation theory, especially under the conditions of uncertainty. Yes or no?
Exercise 2. In order to encourage energy conservation, many public utility companies charge consumers a higher rate on units of electricity consumed in excess of some threshold amount. In contrast, a common practice by other firms is to offer “quantity discounts” to consumers who purchase large quantities of a good. Suppose income is $100, PX = $2 if theconsumer buys less than 40 units of X, and PY = $5.A. For the energy case, assume PX = $3 if the consumer buys more than 40 units of XB. For the “quantity discounts” case, assume PX = $1 after 40 units of X were consumed Draw the budget constraints in each of the cases above. What are the implications of the opportunity sets in terms of consumer behavior to consume each of the products?
Indicate whether the statement is true or false, and justify your answer.Suppose that a long-time nicotine addict who is trying to quite smoking decides he wants a cigarette, but his friends successfully restrain him. The friends’ intervention has an ambiguous effect on the addict’s welfare.
1. Which of the following behaviors contradict the standard discounted utilitymodel? (A) hyperbolic discounting; (B) context effects; (C) preference for commitments; (D) all of the above. 2. A nudge is a policy solution that is(A) cheap to implement;(B) has a predictable effect on agents’ behavior;(C) does not put additional constraints on agents’ freedom of choice;(D) all of the above.
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure. Given the following marginal utility schedule for good X and good Y for the individual, and given that the price of X and the price of Y are both $1, and that the individual spends all income of $7 on X and Y, Q 1 2 3 4 5 6 7 MUx 15 11 9 6 4 3 1 MUy 12 9 6 5 3 2 1 a. Indicate how much of X and Y the individual should purchase to maximize utility. b. Show that the condition for constrained utility maximization is satisfied when the individual is at his or her optimum. c. Determine how much total utility the individual receives when he or she maximizes utility? How much utility would the individual get if he or she spent all income on X or Y?
For a > 0, consider a consumer whose utility function amounts to u(x1, x2) = − exp(−ax1x2). Can you take first order conditions to solve the utility maximization problem? Explain your argument. Next solve the utility maximization problem, and derive Marshallian demands and the indirect utility function. Given your calculations, state and use the duality theorem to find the expenditure function and Hicksian demand Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Clearly comment on the validity of the statement as True or False. Justify your answer in either case. Draw diagram along with explanation Budget constraint and budget set depends on prices and income Marginal rate of substitution is increasing for concave indifference curve Strictly convex indifference curve implies unique solution If one commodity is neutral and other is good. Indifference curve is horizontal
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. Suppose that Shelly's preferences for consumption and leisure can be expressed as u(c ,l)=(c-300) (l-60). a) Calculate her utility, u0 , if she consumes c = $1000 and enjoys l = 110 hours of leisure per week. b) Evaluate her marginal utilities of consumption and leisure at this point and use them to determine the slope of her indifference curve at this point. [Hint:Using calculus, it can be shown that for any given level of utility u, MUc = l - 60 and that MUl = c - 300.] c) Marginal utilities are important because they can be used to calculate the change in utility, ∆u, that results from changing c and l by the small amounts ∆c and ∆l. The induced change in utility is approximately (≈): ∆u ≈ MUl ∆l + MUc ∆c. Based on your answers for (b), what happens to her utility if her consumption increases by ∆c = $2 and her leisure declines by ∆l = 1 hour? d)…
Vilfredo has complete and transitive preferences on cars. We know that he prefers a Hyundai Sonata to a Mazda 3, and that he finds a Mazda 3 at least as good as a Honda Civic. Can we conclude that he prefers a Hyundai Sonata to a Honda Civic? Yes No
Indicate whether the statement is true or false, and justify your answer.If people demand a self-commitment device, it must be Pareto self-improving; otherwise it would not be demanded by utility-maximizing economic agents.
Endowment Effect and Willingness to Accept An experiment gives 50 students a coffee mug valued at $6. Later, students are asked the minimum amount for which they would sell the mug (willingness to accept). The average asking price is $10. None of the students without mugs are willing to pay more than $6 to buy one (willingness to pay). (a) Compare the willingness to accept with the willingness to pay, and use the endowment effect to explain the discrepancy. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
q7- Which statement is incorrect for statistical independence between X and Y? Select one: a. The occurence of Y has no impact on the probability for the occurence of X b. If X and Y occur jointly, it is purely by chance c. The correlation between X and Y is 0 d. The correlation between X and Y is 1