Mr. Surly consumes only two goods and hates them both. His utility function is U(x, y) = 2max{x, y}. Mr. Surly has (weakly) convex preferences.

Question

Quizplus · Accepted Answer

Since Mr. Surly has (weakly) convex preferences, it means that his indifference curves are (weakly) convex. This is consistent with his utility function, as the max function generates a kinked indifference curve, which is (weakly) convex.

Mr Surly Consumes Only Two Goods and Hates Them Both