Question
1. Alice's preferences over consumption (C) and leisure (L) is represented by u(C, L) = C + max{8L L 2 2 , 0} where C
1. Alice's preferences over consumption (C) and leisure (L) is represented by u(C, L) = C + max{8L L 2 2 , 0} where C 0 and 0 L 24.
(a) Are her preferences monotone? Are they strongly monotone? Explain briefly.
(b) Are her preferences convex? Are they strictly convex? Explain briefly. [Note: Drawing indifference curves might be helpful but not required].
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Essentials of Business Driven Information Systems
Authors: Paige Baltzan, Amy Phillips
1st edition
1260004716, 978-0073376721
