Utility function is a helpful tool to represent preferences so we can analyze resource allocation using...

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Utility function is a helpful tool to represent preferences so we can analyze resource allocation using mathematical notations and generate predictions about how the most preferred, affordable consumption bundle will change as prices and the income changes. A. explain the different forms of utility function? and how it is related to the marginal rate of substitution? B. mention the properties should be available in the utility function to be well behaved? what are the implications of having well behaved utility function? Utility function is a helpful tool to represent preferences so we can analyze resource allocation using mathematical notations and generate predictions about how the most preferred, affordable consumption bundle will change as prices and the income changes. A. explain the different forms of utility function? and how it is related to the marginal rate of substitution? B. mention the properties should be available in the utility function to be well behaved? what are the implications of having well behaved utility function?

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Answer Different Forms of Utility Function and Relation to Marginal Rate of Substitution MRS Cardinal Utility Function This form assigns numerical val... View the full answer