Mr. B thinks cheese is addictive, the more you eat, the more you want. Suppose denotes the quantity of cheese. Mr. B's utility function can be represented by
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1 markMicroeconomicsConsumer preferences and utilityMarginal utility and the equi-marginal principleModerateabout 2 min
DSE 2012 Question 4: Consumer preferences and utility
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Mr. B thinks cheese is addictive, the more you eat, the more you want. Suppose x denotes the quantity of cheese. Mr. B's utility function can be represented by (A) u(x,y)=x²+y (B) u(x,y)=ln x+ln y (C) u(x,y)=x+y (D) u(x,y)=min {x,y}
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What this question tests
This question is on Marginal utility and the equi-marginal principle, part of Consumer preferences and utility in Microeconomics.
Diminishing marginal utility and the cardinal rule that a consumer equalises marginal utility per rupee across goods.
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