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Conf: Chapter 1, Consumer Theory, Msg: 15201
From: Martin Caley (martin.caley@economics.treasury.gov.im)
Date: 2/22/2005 12:34 PM

No Topic Martin Caley MCaley martin.caley@economics.treasury.gov.im Consider U(x,y) = xy. This is clearly convex to the origin. Now consider F(u) = U^a where a > 0. This is strictly increasing and so represents the same preferences. For 0 < a < 1, the marginal utility of x and y is decreasing. But for a > 1?