Given the following utility function, U(x₁,x₂)= x₁* x₂, which of the following does not represent the same preference ordering: A)x₁x₂+ 15. B)(x₁x₂)². C)x₁+ x₂. D)x₁x₂- 1000.

Question

Quizplus · Accepted Answer

The correct answer is C.The utility function U(x₁,x₂)= x₁* x₂ represents indifference curves that are rectangular hyperbolas. The other three options represent indifference curves that are also rectangular hyperbolas, but they are not the same as the indifference curves represented by the utility function U(x₁,x₂)= x₁* x₂.

Given the Following Utility Function, U(x1,x2)= X1 * X2, Which

Given the Following Utility Function, U(x₁,x₂)= X₁* X₂, Which