1. Business
  2. Economics
  3. claras utility function is u xaxb a she likes...

Question: claras utility function is u xaxb a she likes...

Question details

Clara’s utility function is U = xAxB.

(a) She likes consuming 10 apples and 10 bananas as much as consuming 1 apple and how many bananas?

(b) Does this mean her preferences violate the assumption of convexity (prefer averages to extremes)?

Solution by an expert tutor
Blurred Solution
This question has been solved
Subscribe to see this solution