Bob has a utility function U(x, y) = √x1 + 0.8√x2 + 0.64√x3 over his incomes x1, x2, x3 in the next three years. This function is an example of (A) expected utility; (B) quasi-hyperbolic utility function; (C) discounted utility; (D) none of the above.
Bob has a utility function U(x, y) = √x1 + 0.8√x2 + 0.64√x3 over his incomes x1, x2, x3 in the next three years. This function is an example of (A) expected utility; (B) quasi-hyperbolic utility function; (C) discounted utility; (D) none of the above.
Microeconomics A Contemporary Intro
10th Edition
ISBN:9781285635101
Author:MCEACHERN
Publisher:MCEACHERN
Chapter6: Consumer Choice And Demand
Section: Chapter Questions
Problem 13PAE
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Bob has a utility function U(x, y) = √x1 + 0.8√x2 + 0.64√x3 over his incomes
x1, x2, x3 in the next three years. This function is an example of
(A) expected utility;
(B) quasi-hyperbolic utility function;
(C) discounted utility;
(D) none of the above.
. Which of the following preferences agree with Bob’s utility?
(A) (9, 10, 11)
≻
(9, 10, 12);
(B) (9, 10, 11)
≻
(11, 10, 9);(C) (9, 10, 11)
≻
(9, 11, 10);
(D) none of the above.
- Bob’s utility function implies
(A) time stationarity; (B) transitivity; (C) impatience; (D) all of the above.
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