Answered: or the utility function…

or the utility function (x^3)(z^2)Provide a positive linear transformation of the utility function, then, provide a nonlinear monotone transformation of the utility function.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter3: Preferences And Utility

Section: Chapter Questions

Problem 3.13P

See similar textbooks

Related questions

Q: Q) The market demand for the output is P = 80-Q, where Q is the output level and P is the price per…

A: "The competitive equilibrium in the labor market occurs at a point where labor supply function…

Q: Suppose we estimate the cross-price elasticity of two goods for a small town to be -.75. In this…

A: The cross-price elasticity of demand is defined as the relationship between two products when the…

Q: 1. Rank the following markets from that where price controls would cause the greatest disequilibrium…

A: Elasticity is an economic concept used to measure the change in the aggregate quantity demanded of a…

Q: "Uber eats usually has a promotion in which, if a customer orders more than $30 worth of food at a…

A: Given information Uber eats has promotional activity and by this activity customers are offered to…

Q: he graph shows the demand curve, marginal revenue urve, and cost curves of Bob's Best Burgers, a…

A: Answer to the question is as follows:

Q: 02. The change in the budget line from B2 to B1 was caused by: O (a) an increase in the consumer's…

A: The budget line is a graphical representation of all potential combinations of the two commodities…

Q: the mobile phone market in europe shows the following characteristics? Production 15.9 MN units…

A: In the free market, equilibrium price and quantity is determined by the intersection of the demand…

Q: People in a certain group have a 0.75% chance of dying this year. If a person in this group buys a…

Q: nce again, consider a closed economy th the following information: Economic investment = $4500…

A: GDP is the market value of goods and services produced within an economy in a given period of time.

Q: What shapes would you generally expect a total product curve and a marginal product curve to have?

A: Answer to the question is as follows:

Q: As the price level falls, real wage ____________and people choose to work ___________. a. rises;…

A: We know that the tangency condition for optimal decision between consumption and leisure is MULw=MUC…

Q: The table shows the distribution of market income. Market income (percent of total) 1 7 14 23 55…

A: The theory of lorenz curve is given by the American economist Maz O. Lorenz. The Lorenz Curve shows…

Q: Which of the following is the best example of a good or service that would be considered non-rival…

A: Public goods are those goods which have the characteristics of being both non-excludable and…

Q: (Figure: Electricity Generation). What is this monopolist's maximum profit? Group of answer choices…

A: Monopolist's maximum profit is at that level of output where marginal revenue is equal to marginal…

Q: The above table shows the benefit to each voter if an issue passes. The cost per voter of the issue…

A: The majority rule is a choice rule that chooses options which have a majority, that is to say, the…

Q: David consumes two things: gasoline (91) and bread (42). David's usility function is…

A: In economics, the utility function measures the welfare or satisfaction of a consumer as a function…

Q: Help....... Solve Write Company has a maximum capacity of 200,000 units per year. Variable…

A: The break-even point is the point at which total cost and total revenue are equal, meaning there is…

Q: Which of these is an alternative to monetar policy and aims to reduce inflation? a) reduce the…

A: Monetary policy is that policy which is used by government to control the economy. It means the…

Q: Austin is a dot-com entrepreneur who has established a Web site at which people can design and buy…

A: Economic profit can be understood as the difference between the total revenue and the sum of…

Q: Consider a government that raises taxes by $150. The average citizen there spends 90% of each…

A: Here, the marginal propensity to consume is given as 90% (0.9), which implies that an average…

Q: DI, C and S Given the following income, spending, and savings data, please answer the following…

A: There is a very vast relationship between Income, consumption and savings, as what we earn will…

Q: Insulin Prices Price $3,700 $50 U.S.A 100 MR 300 Demand Price Quantity $600 MC=AC $50 300 Mexico MR…

Q: hich of the following is likely to increase the supply of labour? a decrease in fringe benefits…

A: Increase in the labour supply leads to cheaper availability of labor in the market. It reduces the…

Q: Consider the following closed economy, which we shall call Gazzalestan. C=100+6/10 X YD. I=1700…

A: Private savings:- Private saving is the total of what individuals, private businesses, and…

Q: please answer the following question: 1. Automatic stabilizers: A) work without the need for…

A: A boom illustrates a phase of elevated or rised growth within a business, market, industry, or…

Q: Which of the following sources of revenue is used to fund government spending? A) corporate…

A: Government expenditure is the amount of money allocated by the public sector for the acquisition of…

Q: On a distant moon colony, all decisions about government policy are made by a computer. The interest…

A: When a decision has to be made by a computer regarding government policy, then the certain limits…

Q: The price-demand equation and the cost function for the production of active styluses are given,…

A: total cost is defined as the sum of all the expenses incurred by the producer to produce goods.

Q: 2. A sports complex is to be constructed. Two plans are under consideration. Plan I is to construct…

A: A sports complex is to be constructed. Two plans are under consideration. While planning our focus…

Q: Diagram 1 Price Level (PL) O ADO O AD1 YF O AD2 AD3 O AD3 AD4 If you cannot see the image above,…

Q: Again, please consider the following information, related to Economy Alpha. Economy Alpha contains…

A: Bank reserves are the cash essentials that monetary organizations should have close by to meet…

Q: A draw bench for precision forming and strengthening of carbon steel tubing has a cost of $900,000.…

A: The double-declining balance depreciation technique is a sped-up depreciation strategy that…

Q: Lisa lawn company (LLC) is a lawn mowing business in a perfectly competitive market for lawn moving…

A: Disclaimer- “Since you have asked multiple question, we will solve the first three question for you…

Q: A friend is celebrating her birthday and wants to start saving for her anticipated retirement. She…

A: Given , Years until retirement: 30 Amount to withdraw each year: $120,000 Years…

Q: nterest rate... How much do you need to deposit in an account today in order to have $11,000 in…

A: Every commercial bank decides its Annual Percentage Rate (APR) range based on the interest rate set…

Q: Vera's Violins is the only shop in a town that sells violins. Vera, the shop owner, makes the…

A: Producing as much as possible from the resources that are available in an economy is the economic…

Q: In the market for a nonrenewable natural resource, the equilibrium price is the price that gives…

A: At the marketplace, when buyers and sellers are exchanging a non-renewable resource, it can be said…

Q: Which of the following is true? a. All economists agree that the tax multiplier is smaller than…

A: Government spending multiplier = ratio of change in income/ratio of change in government spending.

Q: Use the diagram below to determine the price and quantity for:

A: The pareto efficiency refers to situation where one can not be made better off without making other…

Q: Sort the following shocks into aggregate supply or aggregate demand shocks. Remember that "shocks”…

A: "Aggregate supply indicates total units of commodities that firms produce and sell at a given price…

Q: A key assumption for the identification of the ceteris paribus effect in a multiple linear…

A: Multiple linear regression model is a model of several explanatory variables for predicting the…

Q: A small print shop is investing in new printing equipment that will cost $30,000. They estimate that…

A: Given that :- New printing equipment cost $30,000 Additional revenues for every of the next 6 years…

Q: Plz correct option

A: Unemployment rate represents the percentage of the total labor force that is unemployed but are…

Q: 1. A bank has $140,000 in reserves, $1,600,000 in loans, and checkable deposits of $1,250,000. If…

A: A required reserve ratio is the fraction of deposits that regulators require a bank to hold in…

Q: Suppose that marginal cost, and thus market supply, for the industry is given by P=2Qs + 4. The…

A: Marginal external cost (MEC) is extrade withinside the value to events apart from the manufacturer…

Q: .35 Price .50 .30 .15 Electricity Generation MR 2,000 2,700 3,000 AC Demand MC Quantity (GWh)

A: A monopoly market is the market with single seller due to which government sometimes regulate this…

Q: The table shows the total revenue of the six firms that make kevlar kayaks. If the U.S. firms in the…

A: The following information about the firms shows that the firms are operating in an oligopolistic…

Q: The profit maximization condition is where he profit maximization quantity of output is at he profit…

A: The monopoly firm maximizes profit where the MR=MC. Monopoly firm has market power. Thus, it is…

Q: competitive industry, with side-by-side graphs for the industry and a firm within that industry.…

A: Perfectly competitive market is a market where businesses offer an indistinguishable item and where…

Q: An econometrician finds the following estimates of the relationship between the price of tomatoes -…

A: INTRODUCTION: MARKET POWER: Market power refers to the flexibility of a firm (or group of firms) to…

Concept explainers

Form Utility

The term utility in general refers to the satisfaction earned from usage of a particular product or service. Utility always plays an important role because it influences various important elements like demand & thereby the price of the good or service as well. Though utility is not easy to measure, various types of economic models can be used indirectly. There can be various types of utilities like economic utility, marginal utility, cardinal utility, form utility.

Question

For the utility function (x^3)(z^2)Provide a positive
linear transformation of the utility function, then, provide a nonlinear monotone transformation of the utility function.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Introduction

VIEW

Explanation for part 1

VIEW

Explanation for part 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Now assume that the utility function takes the function form u(c) = ln(c). Note that the derivative of the natural logarthm is u'(c) = 1/c .
Consider a utility function given by:
For the following utility function find the MRS at (x, y) = (2, 3) a) U(x, y) =2x +y b) U(x, y) =x^3 y^2 c) U(x, y) =min(x, 2y) Solve subparts (c )correctly
Total Utility derived from the consumption of a product to a consumer is given by U = (20-0.50)'Q where Q is the number of units consumed Using a graphical representation, show what is the nature of variation in the utility with the increasing consumption of the product? Is it in line with the law of diminishing marginal utility? Explain.
alculate the marginal rate of substitution (MRS12) for the following utility function: U(q1,q2)= 60q1+ 0.2(q2)2 What is the value of MRS12 at bundle (4, 3)?
A utility function is given by the equation U = 20xe¬0.1x, where x is the number of glasses of wine consumed. (a) Show that this utility function has a maximum value and calculate the maximum utility. (b) Describe how marginal utility changes for glasses of wine consumed after the maximum utility is reached. Do you consider this reasonable? Give an explanation.
A student has a lunch utility function U(S, P) 8S + 3P, where S is number of salads per month and P is number of pizzas per month. The price of a salad is $5, the price of a pizza is 8, and his monthly income for lunch is $80. a) Derive the equation representing the consumer's demand for Salad. Represent the demand for Salad graphically. b) The price of Salad goes up to $25 and the price of Pizza does not change. Compute and represent graphically the new equilibrium of the student. What can you tell about the substitution effect on Salad and pizza
If u(x, y) is a utility function, then v(u) = −u is a function that qualifies monotonic transformation. Do you agree with this statement? Explain!
Is the function v(x1,x2)=x21x32 a monotonic transformation of u(x1,x2) ? Select one: a. No b. Yes
For each of the following utility functions get the marginal utility of consumption of each of the goods. 1/2 1/2 (a) u(a,b) = a b (b) u(x, y) = x³/4y1/4 (c) u(a, b) = n(a) + In(x) (d) u(x, y) = ln(x) + ln(y) (e) u(a, b) = 2xa +Xb
An individual has an income of 240 and finds his satisfaction by consuming goods x1 for 2$ and x2 for 3$. It is known that the individual utility function is as follows U (x1, x2) = x1²x2³ Determine the value of x1 and x2 for maximum individual satisfaction and calculate the value of utility.
The utility function of a consumer is u = √x + 2y. (a) Calculate how much MRS of that consumer when x = 4. (b) If the consumer currently consumes 4 units of goods x and the price ratio of Px / Py = 1/4, then the consumer should increase or decrease the consumption of goods x?