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Consider an agent whose utility functionu(x1,x2) =x1+(2x2)expresses her preference over bundles(x1,x2), wherex10 andx20. 3 a) Compute the marginal rate of substitution. b) Draw two or
Consider an agent whose utility functionu(x1,x2) =x1+(2x2)expresses her preference over bundles(x1,x2), wherex10 andx20.
3
a) Compute the marginal rate of substitution.
b) Draw two or more of the agent's indifference curves.
c) Is the agent's preference convex?
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