A list of utility functions appears below. For each one sketch the corresponding upper contour set and
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Question:
A list of utility functions appears below. For each one sketch the corresponding upper contour
set and determine which ones are convex. Where an upper contour set is not convex, indicate
by identifying two points in the set with the property that a portion of the straight line between
them lies outside the upper contour set.
U (x1, x2) = min {x1, x2}
U (x1, x2) = max {x1 , x2}
U (x1, x2) = x1+x2
U(x1, x2) = x1+ x2^0.5
U(x1, x2) = 2x1+ 2x2+ 3
Identify any pairs of utility functions that represent the same preferences.
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