Mr. MacGregor's preferences are such that he is indifferent between the following bundles of (x,y): (1,4), (2,2), (4,1). Is it possible that the utility function U = In(xy) will represent his preferences? Explain why or why not. Ignoring the utility function, do you think it is likely that he would be indifferent between the previous three bundles and the bundle (2,3)? Why or why not?

Mr. MacGregor's preferences are such that he is indifferent between the following bundles of (x,y): (1,4), (2,2), (4,1). Is it possible that the utility function U = In(xy) will represent his preferences? Explain why or why not. Ignoring the utility function, do you think it is likely that he would be indifferent between the previous three bundles and the bundle (2,3)? Why or why not?

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter3: Preferences And Utility

Section: Chapter Questions

Problem 3.2P

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