Utility function that can represent alice preferences

Assignment Help Business Management
Reference no: EM131311216

Alice has convex preferences over consumption bundles containing goods x and y. Where (x, y) is the consumption bundle, Alice's preferences are as follows: (5, 2) ∼ (4, 2) ? (3, 2) ∼ (3, 5) ∼ (3, 6)

(a) Write a utility function that can represent Alice's preferences. (Hint: Try one of the 'types' of utility functions we have seen in lecture)

(b) Write another one.

(c) Are Alice's preferences strictly convex? Explain.

(d) Derive Alice's demand functions for x and y, where the budget set is m ≥ pxx + pyy.

Reference no: EM131311216

Questions Cloud

Efficiency and the competitive model : a) Why are trade-offs unavoidable? b) How are incentives important in understanding choices? c) Why is there a trade-off between equity and efficiency?
List the components of a traffic conditioner in diffserv : Is the flow label in IPv6 more appropriate for IntServ or DiffServ?
What kind of information makes products valuable : What kinds of products have value over and above a comparable product because of such information?- What kind of information makes products valuable?
Define the parts of flow specification in intserv : Distinguish between guaranteed services and controlled-load services in IntServ.
Utility function that can represent alice preferences : (a) Write a utility function that can represent Alice's preferences. (Hint: Try one of the 'types' of utility functions we have seen in lecture) (b) Write another one.
What would the costs and benefits be to business : What would the costs and benefits be to business and the consumer in terms of buying checks, exchanging them for merchandise, and bank check processing?
Why do we need path and resv messages in rsvp : If a communication is unicast, how can we use RSVP, which is designed for multicast in IntServ?
Read management focus : Please read Management Focus: FCX Systems in Chapter 13 in your textbook (page 446 in the 7th edition and page 394 in the 8th edition) and answer the following questions:
Discuss the mechanisms and costs that are involved : Discuss the mechanisms and costs that are involved. Examine ways in which our society would be different if no one ever broke a law.

Reviews

Write a Review

Business Management Questions & Answers

  Significant event in evolution of organizational structure

What is the most significant event in the evolution of organizational structure? Defend your response.

  Evaluating organization

There are a number of questions which we should ask ourselves with regard to an organization we have developed for any activity. What are some of these questions managers should ask themselves while evaluating organization.

  How can changing your comfort zones

Describe a situation in which you felt out of your comfort zone. Why did this situation make you feel uncomfortable and what activities or situations are you currently avoiding because you feel out of place?

  What is contingency theory

What is contingency theory? What kinds of organizations familiar to you have been successful or unsuccessful in dealing with contingencies from the external environment?

  Purpose of the marketing plan

1. Explain in detail the purpose of the Marketing Plan 2. What is the advantage of defining a corporate mission?

  Evaluate four websites for comprehensive analysis

Required to evaluate four (4) websites for which a comprehensive analysis must be performed. These websites include: • There will be two websites that represent a large organisations and a government agency.

  Contact estate planning attorney

When he met with his accountant at the end of the year, he learned that his total assets are in excess of $1 million. His accountant asked Larry if he had a will, and Larry said he had been too busy to develop one. His accountant strongly recommen..

  Assumptions about leadership different

How are your assumptions about leadership different now than they were in the beginning of the course? What does it mean to be a leader?

  Leading innovative individuals, teams and decision groups

Differences between the skills needed for leading innovative individuals, teams and decision groups and describe a rationale for each difference, using research to support your view

  What is the relationship between tqm and iso 9000

Explain how you would summarize the implementation of TQM for the "new" WonderWash.

  Write persuasive message from the office space movie

Write persuasive message from the office space movie. I need to watch office space movie and write two to three pages about persuasive message that from the movie.

  Unavoidable physical fatigue

What can you change about the way the work is done to deal with the unavoidable physical fatigue?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd