Jim\'s utility function is U(x, y) = xy. Jerry\'s utility function is U(x, y) =

Question

Jim's utility function is U(x, y) = xy. Jerry's utility function is U(x, y) = l,000xy + 2.000. Tammy's utility function is U(x, y) = xy(l - xy). Oral's utility function is u(x,y)=-1/(10+2xy). Marjoe's utility function is U(x, y) = x(y+1.000). Pat's utility function is U(x, y) = 0.5.xy - 10.000. Billy's utility function is U(x. y) = x/y. Francis's utility function is U(x, y) = -xy. Who has the same preferences as Jim? Who has the same indifference curves as Jim? Explain why the answers to (a) and (b) differ.

Explanation / Answer

a) Jerry is the only ones with the same preferences as Jim.

b) Jim, Jerry, and Francis all have the same indifference curves as Jim.

c) In the preference means the unit of x and y uses to attain maximum utility. But the indifference crve means the possibility of substitute of one unit of x to number of unit of y. Or the indifference crve is derived from the different choice combination of x and y.

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