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angela210793
 3 years ago
first of all wht do u call preferences which utility function is U(x,y)=min{2x+y;x+2y}
angela210793
 3 years ago
first of all wht do u call preferences which utility function is U(x,y)=min{2x+y;x+2y}

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sheg
 3 years ago
Best ResponseYou've already chosen the best response.0angela see this pdf i feel it would help you

angela210793
 3 years ago
Best ResponseYou've already chosen the best response.0i know what they are called in albanian i just wanted to know the name in english actually :)

mahmit2012
 3 years ago
Best ResponseYou've already chosen the best response.0you should plot two lines then min of them in each interval is utility function. i make a problem with only one variable.

mahmit2012
 3 years ago
Best ResponseYou've already chosen the best response.0dw:1336860962595:dw

vaboro
 3 years ago
Best ResponseYou've already chosen the best response.0@sheg where is your pdf from?

vaboro
 3 years ago
Best ResponseYou've already chosen the best response.0@angela210793 the various values of x and y are the preferences

vaboro
 3 years ago
Best ResponseYou've already chosen the best response.0the question that bothers me is how one measures utility, or, in other words how to derive the utility function?

vaboro
 3 years ago
Best ResponseYou've already chosen the best response.0does anyone know any practical ways of deriving utility functions? have anyone heard of such processes being performed in the real word? I haven't and therefore, utility function is more an abstract concept to me than a practical one.

angela210793
 3 years ago
Best ResponseYou've already chosen the best response.0What i wanted to ask about is....do u equal 2x+y=x+2y as u usually do when u have U(xy)=min{ax,by}

vaboro
 3 years ago
Best ResponseYou've already chosen the best response.0if you do this you will get x=y which doesn't make any sense in fact the function U(x,y) equals either 2x+y or x+2y depending on what is smaller, for example, if x=1 and y=2 2x+y=2+2=4 and x+2y=1+2*2=5 therefore the function will equal 4 (the smaller of the two). x and y are preferences: a person prefers 1 unit of x and 2 units of y and the utility function equals 4 in this case.
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