Graph a typical indifference curve for the following functions. Calculate the marginal rate of substitution for...

 

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Graph a typical indifference curve for the following functions. Calculate the marginal rate of substitution for each function. Which of these functions represent the same preferences ? Hint: Select several(4 or more) bundles, i.e. values of (x, y), and check whether both utility functions imply the same ranking of options. (a) u(x, y) = 4x + 2y (b) u(x, y) = min (x,y) (Hint: Is this differentiable?) (c) u(x, y) = ry (d) u(x, y) = (ry)¹/2 Graph a typical indifference curve for the following functions. Calculate the marginal rate of substitution for each function. Which of these functions represent the same preferences ? Hint: Select several(4 or more) bundles, i.e. values of (x, y), and check whether both utility functions imply the same ranking of options. (a) u(x, y) = 4x + 2y (b) u(x, y) = min (x,y) (Hint: Is this differentiable?) (c) u(x, y) = ry (d) u(x, y) = (ry)¹/2

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