Asked by
George Dades
on Oct 14, 2024
Verified
A person with the utility function U(x, y) 10 y2 x has convex preferences.
Convex Preferences
A representation in economics of a consumer preference structure where a mix or combination of two goods is preferred over either of the two goods alone, indicating a desire for diversification.
- Evaluate the effects of different utility functions on the establishment of various preference frameworks, including convex, nonconvex, and linear types.
Verified Answer
MR
Learning Objectives
- Evaluate the effects of different utility functions on the establishment of various preference frameworks, including convex, nonconvex, and linear types.