Answer to Question #236486 in Microeconomics for Chibwe Evans

Question

A) Prove and specify whether the following utility functions are convex or not (whether they 

have a diminishing marginal rate of substitution or not).

i) U(x,y) = 3x + xy + 4y [2 Marks]

ii) U(x,y) = x2 + y2

 [2 Marks]

iii) U(x,y) = (x2 + y2)0.5

 [2 Marks]

iv) U(x,y) = xα yβ where α&β>0[2Marks]

v) U(x.y) = √𝒙. 𝒚 [2 Marks]

Answer 1

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