=+c. Imagine the same procedure for labeling each bundle in your graph; that is, for each bundle,
Question:
=+c. Imagine the same procedure for labeling each bundle in your graph; that is, for each bundle, determine what bundle on the 45-degree line is indifferent and label the bundle with the distance on the 45-degree line from (0,0) to the indifferent bundle. The result is a function u1x1
,x2 2 that assigns to every bundle a number. Can you explain how this function meets our definition of a utility function?
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Related Book For
Microeconomics An Intuitive Approach With Calculus
ISBN: 9781337335652,9781337027632
2nd Edition
Authors: Thomas Nechyba
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