angela210793
  • angela210793
first of all wht do u call preferences which utility function is U(x,y)=min{2x+y;x+2y}
Economics - Financial Markets
  • Stacey Warren - Expert brainly.com
Hey! We 've verified this expert answer for you, click below to unlock the details :)
SOLVED
At vero eos et accusamus et iusto odio dignissimos ducimus qui blanditiis praesentium voluptatum deleniti atque corrupti quos dolores et quas molestias excepturi sint occaecati cupiditate non provident, similique sunt in culpa qui officia deserunt mollitia animi, id est laborum et dolorum fuga. Et harum quidem rerum facilis est et expedita distinctio. Nam libero tempore, cum soluta nobis est eligendi optio cumque nihil impedit quo minus id quod maxime placeat facere possimus, omnis voluptas assumenda est, omnis dolor repellendus. Itaque earum rerum hic tenetur a sapiente delectus, ut aut reiciendis voluptatibus maiores alias consequatur aut perferendis doloribus asperiores repellat.
katieb
  • katieb
I got my questions answered at brainly.com in under 10 minutes. Go to brainly.com now for free help!
anonymous
  • anonymous
angela see this pdf i feel it would help you
angela210793
  • angela210793
i know what they are called in albanian i just wanted to know the name in english actually :)
anonymous
  • anonymous
you should plot two lines then min of them in each interval is utility function. i make a problem with only one variable.

Looking for something else?

Not the answer you are looking for? Search for more explanations.

More answers

anonymous
  • anonymous
|dw:1336860962595:dw|
vaboro
  • vaboro
@sheg where is your pdf from?
vaboro
  • vaboro
@angela210793 the various values of x and y are the preferences
vaboro
  • vaboro
the question that bothers me is how one measures utility, or, in other words how to derive the utility function?
vaboro
  • vaboro
does 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
  • angela210793
What 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
  • vaboro
if 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.

Looking for something else?

Not the answer you are looking for? Search for more explanations.