Asked by
Andrea Tellez
on Dec 01, 2024Verified
Mr.Surly consumes only two goods and hates them both.His utility function is U(x, y)=2max{x, y}.Mr.Surly has (weakly)convex preferences.
Convex Preferences
A set of consumer preferences that exhibit a specific property where mixtures of goods are preferred over singular extremes, displaying a curve outward towards the origin on a utility graph.
Weakly Convex
Describes a curve or set in geometry and mathematical functions that bulges outward less sharply than a perfectly convex shape, often applied in optimization problems.
- Assess the impact of heterogeneous utility functions in shaping preference structures, encompassing convex, nonconvex, and linear formats.
Verified Answer
MA
Learning Objectives
- Assess the impact of heterogeneous utility functions in shaping preference structures, encompassing convex, nonconvex, and linear formats.