Question: 2.9 Sanghoon has a utility function over audiobooks, A, and movie downloads, M, given by U = 1BM. Linh has a utility function given by

2.9 Sanghoon has a utility function over audiobooks, A, and movie downloads, M, given by U = 1BM. Linh has a utility function given by U = BM. Explain why Sanghoon and Linh have the same ordering over any two bundles and therefore have the same ordinal preferences. M(p. 18)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Intermediate Microeconomics Questions!