Suppose represents a complete, transitive, continuous preference relation. Which functions also represent the same preference relation?
Select all that apply.
2 marksMicroeconomicsConsumer preferences and utilityUtility functions and monotonic transformationsModerateabout 2 min
IIT JAM 2023 Question 31: Consumer preferences and utility
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Suppose u:ℝⁿ₊→ℝ₊ represents a complete, transitive, continuous preference relation. Which functions also represent the same preference relation? (A) f=u+u³ (B) g=u+Σᵢ₌₁ⁿ xᵢ (C) h=u^(1/n) (D) m=u+(x₁²+⋯+xₙ²)⁰·⁵
Also written as: Suppose u:R^n_+->R_+ represents a complete, transitive, continuous preference relation. Which functions also represent the same preference relation?
Consumer preferences and utility has come up 93 times in 7 exams since 2007.
What this question tests
This question is on Utility functions and monotonic transformations, part of Consumer preferences and utility in Microeconomics.
How ordinal utility represents preferences, and why any monotonic transformation of a utility function represents the same ones.
TestStop has 10 past-paper questions on this subtopic.
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