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Utility is a type of function that occurs in economics. When a consumer receives x unils of a certain product, a certain amount of pleasure, or utility U, is derived The graph represents a typical utility function. a) Find the average rate of change of U as x changes from 0 to 1 , from 1 to 2 , from 2 to 3 , from 3 to 4 b) Why do

Utility is a type of function that occurs in economics. When a consumer receives x unils of a certain product, a certain amount of pleasure, or utility U, is derived The graph represents a typical utility function. a) Find the average rate of change of U as x changes from 0 to 1 , from 1 to 2 , from 2 to 3 , from 3 to 4 b) Why do

Microeconomic Theory
Microeconomic Theory
12th Edition
ISBN:9781337517942
Author:NICHOLSON
Publisher:NICHOLSON
Chapter3: Preferences And Utility
Section: Chapter Questions
Problem 3.13P
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10. Utility is a type of function that occurs in economics. When a consumer receives x unils of a certain product, a certain amount of pleasure, or utility U, is derived The graph represents a typical utility function.

a) Find the average rate of change of U as x changes from 0 to 1 , from 1 to 2 , from 2 to 3 , from 3 to 4

b) Why do the average rates of change decrease as x increases?

a) The average rate of change of U as x changes from 0 to 1 is (Type an integer or a decimal.)

Utility is a type of function that occurs in economics. When a consumer receives x units of a certain product, a certain amount of pleasure, or utility U, is derived The graph represents a typical utility function. a) Find the average rate of change of U as x changes from 0 to 1, from 1 to 2, from 2 to 3, from 3 to 4 b) Why do the average rates of change decrease as x increases? a) The average rate of change of U as x changes from 0 to 1 is ☐ (Type an integer or a decimal.) AU 200 (4,162) 150- (3,140) (2,110) 100 (1,70) 50- Utility (pleasure units) 2 3 Number of units of product
Transcribed Image Text:Utility is a type of function that occurs in economics. When a consumer receives x units of a certain product, a certain amount of pleasure, or utility U, is derived The graph represents a typical utility function. a) Find the average rate of change of U as x changes from 0 to 1, from 1 to 2, from 2 to 3, from 3 to 4 b) Why do the average rates of change decrease as x increases? a) The average rate of change of U as x changes from 0 to 1 is ☐ (Type an integer or a decimal.) AU 200 (4,162) 150- (3,140) (2,110) 100 (1,70) 50- Utility (pleasure units) 2 3 Number of units of product
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