Jim’s utility function is U(x, y) = xy. Jerry’s utility function is U(x, y) = 1,000xy...

Jim’s utility function is U(x, y) = xy. Jerry’s utility function is U(x, y) = 1,000xy + 2,000. Tammy’s utility function is U(x, y) = xy(1 - xy). Oral’s utility function is -1/(10 + xy. Billy’s utility function is U(x, y) = x/y. Pat’s utility function is U(x, y) = -xy.

a. No two of these people have the same preferences.

b. They all have the same preferences except for Billy.

c. Jim, Jerry, and Pat all have the same indifference curves, but Jerry and Oral are the only ones with the same preferences as Jim.

d. Jim, Tammy, and Oral all have the same preferences.

e. None of the above.

Solutions

Expert Solution

Rahul Sunny answered 1 year ago

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