Question 2Kofi's utility function is given by U« (X,Y) = XY . The utility functions of his four friends - Esi(UE) John (U), George (Uc) and Osei (Uo) are:a. UE(X,Y) = 100XYb. U;(X,Y) = –XYc. Uc(X,Y) = XY – 10,000d. U.(X,Y) = X – YWhich of these friends have the same preference as Kofi.

Monotonic transformation is a way of transforming a set of numbers into another set that preserves…

Kofi's utility function is given by Ug (X,Y) = XY . The utility functions of his four friends - Esi (UE) John (U), George (UG) and Osei (Uo) are: a. Ug(X,Y) = 100XY b. U,(X,Y) = -XY c. Uc(X,Y) = XY – 10,000 d. Uo(X,Y) = X – Y Which of these friends have the same preference as Kofi.

Kofi's utility function is given by Ug (X,Y) = XY . The utility functions of his four friends - Esi (UE) John (U), George (UG) and Osei (Uo) are: a. Ug(X,Y) = 100XY b. U,(X,Y) = -XY c. Uc(X,Y) = XY – 10,000 d. Uo(X,Y) = X – Y Which of these friends have the same preference as Kofi.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter10: Consumer Choice Theory

Section: Chapter Questions

Problem 9P

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The term utility in general refers to the satisfaction earned from usage of a particular product or service. Utility always plays an important role because it influences various important elements like demand & thereby the price of the good or service as well. Though utility is not easy to measure, various types of economic models can be used indirectly. There can be various types of utilities like economic utility, marginal utility, cardinal utility, form utility.

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