Homework Help is Here – Start Your Trial Now!
Business
Economics
There are two shows on Netflix that Jeff can watch, Show 1 and Show 2. ₁ measures the number of episodes watched of Show 1 and ₂ measures the number of episodes watched of Show 2. Jeff's preferences can be represented by u(x₁, x2) = x² + ax². Jeff has 6 hours available for watching Netflix today. Each episode of Show 1 lasts 30 minutes, while each episode of Show 2 lasts one hour. For all question parts, round to three decimal places if necessary. For parts (a)-(f), let a = 1. Draw Jeff's indifference curves for the utility levels u = 4, 9, 16. Draw a straight line between the bundles (₁, ₂) = (4,0) and (x₁, x₂) = (0,4). Now, use your picture to determine whether the following two statements are true or false. Answer "1" for true. Answer "0" for false. a) Statement 1: Jeff's preferences are strongly monotone. b) Statement 2: Jeff's preferences are strictly convex. c) Find the bundle at which one of Jeff's indifference curves is tangent to the budget line. (*1,*^2) = ( d) Evaluate Jeff's utility at the aforementioned tangent bundle. u(x1, x2) = e) Evaluate Jeff's utility at the bundle where he consumes only Show 1. u(12,0) = f) Evaluate Jeff's utility at the bundle where he consumes only Show 2. u(0, 6) = =

There are two shows on Netflix that Jeff can watch, Show 1 and Show 2. ₁ measures the number of episodes watched of Show 1 and ₂ measures the number of episodes watched of Show 2. Jeff's preferences can be represented by u(x₁, x2) = x² + ax². Jeff has 6 hours available for watching Netflix today. Each episode of Show 1 lasts 30 minutes, while each episode of Show 2 lasts one hour. For all question parts, round to three decimal places if necessary. For parts (a)-(f), let a = 1. Draw Jeff's indifference curves for the utility levels u = 4, 9, 16. Draw a straight line between the bundles (₁, ₂) = (4,0) and (x₁, x₂) = (0,4). Now, use your picture to determine whether the following two statements are true or false. Answer "1" for true. Answer "0" for false. a) Statement 1: Jeff's preferences are strongly monotone. b) Statement 2: Jeff's preferences are strictly convex. c) Find the bundle at which one of Jeff's indifference curves is tangent to the budget line. (*1,*^2) = ( d) Evaluate Jeff's utility at the aforementioned tangent bundle. u(x1, x2) = e) Evaluate Jeff's utility at the bundle where he consumes only Show 1. u(12,0) = f) Evaluate Jeff's utility at the bundle where he consumes only Show 2. u(0, 6) = =

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
See similar textbooks
icon
Related questions
Question
can you please help me with questions c, d, e and f? Thanks!
There are two shows on Netflix that Jeff can watch, Show 1 and Show 2. ₁ measures the number of episodes watched of Show 1 and 2 measures the number of episodes watched of Show 2. Jeff's preferences can be represented by u(x₁, x₂) = x² + ax². Jeff has 6 hours available for watching Netflix today. Each episode of Show 1 lasts 30 minutes, while each episode of Show 2 lasts one hour. For all question parts, round to three decimal places if necessary. For parts (a) - (f), let a = 1. Draw Jeff's indifference curves for the utility levels u = 4, 9, 16. Draw a straight line between the bundles (₁, ₂) = (4,0) and (x₁, x₂) = (0,4). Now, use your picture to determine whether the following two statements are true or false. Answer "1" for true. Answer "0" for false. a) Statement 1: Jeff's preferences are strongly monotone. b) Statement 2: Jeff's preferences are strictly convex. c) Find the bundle at which one of Jeff's indifference curves is tangent to the budget line. (1,2)=( d) Evaluate Jeff's utility at the aforementioned tangent bundle. u(x1, x2) = e) Evaluate Jeff's utility at the bundle where he consumes only Show 1. u(12,0) = f) Evaluate Jeff's utility at the bundle where he consumes only Show 2. u (0,6) =
Transcribed Image Text:There are two shows on Netflix that Jeff can watch, Show 1 and Show 2. ₁ measures the number of episodes watched of Show 1 and 2 measures the number of episodes watched of Show 2. Jeff's preferences can be represented by u(x₁, x₂) = x² + ax². Jeff has 6 hours available for watching Netflix today. Each episode of Show 1 lasts 30 minutes, while each episode of Show 2 lasts one hour. For all question parts, round to three decimal places if necessary. For parts (a) - (f), let a = 1. Draw Jeff's indifference curves for the utility levels u = 4, 9, 16. Draw a straight line between the bundles (₁, ₂) = (4,0) and (x₁, x₂) = (0,4). Now, use your picture to determine whether the following two statements are true or false. Answer "1" for true. Answer "0" for false. a) Statement 1: Jeff's preferences are strongly monotone. b) Statement 2: Jeff's preferences are strictly convex. c) Find the bundle at which one of Jeff's indifference curves is tangent to the budget line. (1,2)=( d) Evaluate Jeff's utility at the aforementioned tangent bundle. u(x1, x2) = e) Evaluate Jeff's utility at the bundle where he consumes only Show 1. u(12,0) = f) Evaluate Jeff's utility at the bundle where he consumes only Show 2. u (0,6) =
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 6 steps with 28 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Asymmetric Information
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS