1. Jie thinks a cup of coffee is just as good as five cups of orange juice. Let M stand for the number of cups of coffee and N stand for the number of cups of orange juice. Among the following utility functions, how many of them represent his preferences? (1) U(M,N) = max{M,5N} (2) U(M,N) =M + 5N (3) U(M,N) = (3M + 15N)2 (4) U(M,N) = 5M? + N %3D A.0 B.1 C.2 D.3

1. Jie thinks a cup of coffee is just as good as five cups of orange juice. Let M stand for the number of cups of coffee and N stand for the number of cups of orange juice. Among the following utility functions, how many of them represent his preferences? (1) U(M,N) = max{M,5N} (2) U(M,N) =M + 5N (3) U(M,N) = (3M + 15N)2 (4) U(M,N) = 5M? + N %3D A.0 B.1 C.2 D.3

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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