Question
Ram cannot taste any difference between item(a) and item (b) and so he views one of each item as perfect substitutes.Which utility functions might reflects
Ram cannot taste any difference between item(a) and item (b) and so he views one of each item as perfect substitutes.Which utility functions might reflects Ram's preference?
a.U(a,b)=a+b
b.U(a,b)= a+b
c.U(a,b)=2a+2b
d.U(a,b) = 2a+2b
e.U(a,b)=2a+b
f.U(a,b)=2a+b
g.U(a,b)=ab
h.U(a,b)= ab
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Introductory Econometrics A Modern Approach
Authors: Jeffrey M. Wooldridge
2nd Edition
0324113641, 9780324113648
