Suppose a consumer's preferences over commodities 1 and 2 can be represented by the utility function , where . The prices of the two commodities are 1 and 2 respectively and the consumer's income is 150.
The utility function of the consumer is
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Suppose a consumer's preferences over commodities 1 and 2 can be represented by the utility function U(x₁, x₂) = min {x₁, x₂}, where x₁, x₂ ≥ 0. The prices of the two commodities are 1 and 2 respectively and the consumer's income is 150. The utility function of the consumer is (A) continuous at all points in the domain but not differentiable at all points in the domain (B) not continuous at all points in the domain (C) differentiable at all points in the domain (D) None of the above
Also written as: Suppose a consumer's preferences over commodities 1 and 2 can be represented by the utility function U(x_1, x_2) = min {x_1, x_2}, where x_1, x_2 >= 0. The prices of the two commodities are 1 and 2 respectively and the consumer's income is 150. The utility function of the consumer is
Limits, continuity and differentiability has come up 122 times in 7 exams since 2006.
This question is on Differentiability and its link to continuity, part of Limits, continuity and differentiability in Mathematics.
When a derivative exists and why differentiability implies continuity but not conversely.
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Question from the JNU SSS 2012 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.