Asked by
JoJoLe Monkey
on Oct 14, 2024
Verified
A person with the utility function U(x1, x2) minx1 2x2, 2x1 x2 has convex but not strictly convex preferences.
Convex Preferences
A concept in consumer theory indicating that a consumer prefers average bundles of goods over extreme bundles, leading to smoother, convex indifference curves.
Strictly Convex
A term often used in mathematics and economics to describe a curve or function that curves away from the origin more sharply than a straight line, indicating increasing marginal effects.
- Explore the relationship between distinct utility functions and the consequent preference structures they produce, categorized into convex, nonconvex, and linear.
- Understand the concept of indifference curves and their properties.
Verified Answer
AR
Learning Objectives
- Explore the relationship between distinct utility functions and the consequent preference structures they produce, categorized into convex, nonconvex, and linear.
- Understand the concept of indifference curves and their properties.