3. Suppose that the utility functions u(r, y) and v(x, y) are related by v(r, y) = f(u(x,y)). In each case below, check if f is a positive monotonic transformation' of u. %3D (a) f(u) = 3.141592u (b) f(u) = 5000 – 23u (c) f(u) = = (d) f(u) = -u-1

3. Suppose that the utility functions u(r, y) and v(x, y) are related by v(r, y) = f(u(x,y)). In each case below, check if f is a positive monotonic transformation' of u. %3D (a) f(u) = 3.141592u (b) f(u) = 5000 – 23u (c) f(u) = = (d) f(u) = -u-1

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

3. Suppose that the utility functions u(x, y) and v(x, y) are related by v(x, y) = f(u(x, y)).
In each case below, check if f is a positive monotonic transformation' of u.
(a) f(u)
= 3.141592u
(b) f(u) = 5000 – 23u
(c) f(u) = !
%3D
(d) f(u) = -u-1

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