双语Utility对偏好排序消费束赋值随意定名

1、Utility：对偏好（排序的消费束）赋值的随意定名OrdinalUtility function, u(x), x is consumption bundleMonotonic increasing transformation of a utility function represents the same preferenceGuarantee the same order of the consumption bundle - - - MRS is the same for the same consumption bundle.Suppose f is an increasing

2、monotonic transformationux fux11For ux,MU= ux22; MU= ux= iJu x= iJu xiJx1iJx2For fuxiJu1i Jf u xiJu,MU1 = u 1x=;iJx22i Jf u xMU= ux=iJu iJu xiJx2(2018Final) which of the following utility functions does not represent the same preference？()A. U = xa xb， 0 a, b 1 MRS121,2= MU1= a x2MU2b x1B. U = kalog

3、x1 + b logx23,0 a, b 0C. U = ax1 + bl o gx2 ,0 a, b 1 MRS1,2= ax2bx 5a x 5b12D. U = e,0 a, b 1CUPL Tingwen LiuConvexity (indifference curve convex to the Origin)Diminishing MRSProperty of Marginal utility - diminishing marginal utility Prerequisite: Preferenceremains the same; Cannot be falsifiable.

4、 Diminishing marginal utility diminishing MRSCHOICEMaxx Uxstp x= mSuppose we consider two goods.(1) Optimal bundle will be on the budget line12(2) MR S=MU1/MU2=P1/P2 MU1 = MU2 P1P2x2x1x2*x1*ECUPL Tingwen Liu7(2018 final) Suppose the price f respectively. Consumer hasood 1 and 2 are 10$ and 20$, ized

5、 his utility from these twogoods (inner solution), with MU2 equals to 200, and MU1 is ()A. 200B. 300C. 100D. All possible(2017final ）已知一件外套价格100元，一本书价格20元，在某消费者关于这两种商品的效用最大化的均衡点上，一本书对外套的边际替代率为（）。A5B. 0.2C. 0.5D212Q: Suppose utility function is U = xaxb (0 a + b 1),unit price for two goods are p1 and

6、 p2,e is m, (p1,p2,and m are parameters).Please show the optimal choice foods 1 and 2.12Q: Suppose utility function is U = xaxb (0 a + b 1),unit price for two goods are p1 and p2,e is m, (p1,p2,and m are parameters).Please show the optimal choice foods 1 and 2.Optimal bundle should satisfy:p1x1 + p2x2 = mopt imalcondit ion1MR S1,2 x|MU 2x= MU1 |= p1p2(opt imalcondit ion2)12U = xaxb1 iJU iJx1= ax a - 1biJx2212x, iJU = bxa xb - 1 MU1 = a x2MU2bx1For optimal choice: MU1= a x2 = p1 x2= bp1 x1ap2= mBudget: p1x1 + p2x2 = m p1x1MU