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For a utility function for two goods, U(x,y), to have a strictly diminishing MRS (1.e., to be strictly quasi-concave), the following condition must hold: UU-20 U₂+U₂² <0 Use the following table to indicate whether the condition holds for each of the utility functions. Utility Function Condition Holds Condition Does Not Hold U(x,y) = 3x+y U(x,y)=√xy U(x,y)=√x+y U(x,y)=√x² - y² l(x,y) =

For a utility function for two goods, U(x,y), to have a strictly diminishing MRS (1.e., to be strictly quasi-concave), the following condition must hold: UU-20 U₂+U₂² <0 Use the following table to indicate whether the condition holds for each of the utility functions. Utility Function Condition Holds Condition Does Not Hold U(x,y) = 3x+y U(x,y)=√xy U(x,y)=√x+y U(x,y)=√x² - y² l(x,y) =

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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For a utility function for two goods, Ufxy), to have a strictly diminishing MRS (1.e., to be strictly quasi-concave), the following condition must hold: UU-20 U₂+U₂U² <0 Use the following table to indicate whether the condition holds for each of the utility functions. Utility Function Condition Holds Condition Does Not Hold U(x,y) = 3x+y U(x,y)=√xy U(x,y)=√x+y U(x,y) = √√x² - y² 2(x,y) =
Transcribed Image Text:For a utility function for two goods, Ufxy), to have a strictly diminishing MRS (1.e., to be strictly quasi-concave), the following condition must hold: UU-20 U₂+U₂U² <0 Use the following table to indicate whether the condition holds for each of the utility functions. Utility Function Condition Holds Condition Does Not Hold U(x,y) = 3x+y U(x,y)=√xy U(x,y)=√x+y U(x,y) = √√x² - y² 2(x,y) =
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