Show that the preferred relation is transitive for mac

Reference no: EM13207998

Mac Rowe doesn't sweat the petty stuff. In fact, he just cannot detect small differences. He consumes two goods, x and y. He prefers the bundle (x,y) to the bundle (x',y') if and only if (xy - x'y' > 1) . Otherwise he is indifferent between the two bundles.

a. Show that the relation of indifference is not transitive for Mac. (Hint: Give an numerical example.)

b. Show that the preferred relation is transitive for Mac.

Reference no: EM13207998

Questions Cloud

Explain the values of delta g compare to those calculated : How do the values of delta G compare to those calculated from delta H and delta S? which of these two methods could be used to determine how delta G changes with temp?

What is the cpt code for a diagnostic bronchoscopy : What is the cpt code for a diagnostic bronchoscopy is done, with a specimen taken of the mass. The pathology report is positive for carcinoma.

Influence human rights issues : Discuss the following topic - Should trade restrictions be used to influence human rights issues

Prepare a project task list to include all the detailed task : You are the data transformation specialist for the first data warehouse project in an airlines company. Prepare a project task list to include all the detailed tasks needed for data extraction and transformation.

Show that the preferred relation is transitive for mac : Mac Rowe doesn't sweat the petty stuff. In fact, he just cannot detect small differences. He consumes two goods, x and y. He prefers the bundle (x,y) to the bundle (x',y') if and only if (xy - x'y' > 1) . Otherwise he is indifferent between the tw..

Why should a company implement a csr program : 3. How does the CSR program apply to today's trends and current issues in the global marketplace? 4. Whom is the company responsible to? 5. Why should a company implement a CSR program?

Explain what volume of di water must be added to complete : If you were transferring 0.2 mL of stock solution to another vial in order to begin performing a 1:5 serial dilution, what volume of DI water must be added to complete the dilution?

Show possibilities that are consistent with the constraints : Felicity is studying economics and political science. She can read 30 pages of political science per hour but only 5 pages of economics per hour. This week she has a 50-page assignment in economics and a 150-page assignment in political science.

Sigmund freud had much to do with the belief : A basic premise of positive psychology is that the field of psychology. Sigmund Freud had much to do with the belief that. The idea that the "bad is stronger than the good" comes from research showing that. For positive psychologists, one problem wi..

User Account

All Pages