3. For each of the three utility functions in Question 1, 3. For each of the three utility functions in Question 1, (a) find the marginal utilities and verify MU = MRS that you derived in Question MUy 1, (b) determine whether the preference represented by the utility function is homothetic or not. This is the function in question one: (a) U (x, y) = x + 2xy + y. (b) /x +2/G. U (x, y) = Vx + 2/ỹ.
3. For each of the three utility functions in Question 1, 3. For each of the three utility functions in Question 1, (a) find the marginal utilities and verify MU = MRS that you derived in Question MUy 1, (b) determine whether the preference represented by the utility function is homothetic or not. This is the function in question one: (a) U (x, y) = x + 2xy + y. (b) /x +2/G. U (x, y) = Vx + 2/ỹ.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
M⁴
Transcribed Image Text:3. For each of the three utility functions in
Question 1,
3. For each of the three utility functions in Question 1,
(a) find the marginal utilities and verify U.
MRS that you derived in Question
1,
(b) determine whether the preference represented by the utility function is homothetic
or not.
This is the function in question one:
(а) U(х, у) — а + 2ay + y.
(b) U(x, y) = /T+2/ỹ.
U (x, y)
Vĩ +2/ỹ.
(c) U(x, y) = x + y³.
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