Pete consumes goods 1 and 2. Pete thinks that 3 units of good 1 is always a perfect substitute for 4 units of good 2. Which of the following utility functions is the only one that would not represent Pete's preferences? A B с D E U (x₁,x₂) = 40x₁+30x - 10000 1 2 U (x₁,x₂) = 4x₁+3x₂+ 1000 1 2 U(x,x) = min(4x, 3x₂) U (x₁,x₂) = 16x² + 24x x₂ + 9x² 12 More than one of the above does not represent Pete's preferences.

Pete consumes goods 1 and 2. Pete thinks that 3 units of good 1 is always a perfect substitute for 4 units of good 2. Which of the following utility functions is the only one that would not represent Pete's preferences? A B с D E U (x₁,x₂) = 40x₁+30x - 10000 1 2 U (x₁,x₂) = 4x₁+3x₂+ 1000 1 2 U(x,x) = min(4x, 3x₂) U (x₁,x₂) = 16x² + 24x x₂ + 9x² 12 More than one of the above does not represent Pete's preferences.

Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter15: Decision Analysis

Section: Chapter Questions

Problem 23P: In Problem 22, if P(s1) = 0.25, P(s2) = 0.50, and P(s3) = 0.25, find a recommended decision for each...

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