Woob W.

asked • 10/26/20

Utility functions

f(x,y) is a Utility, second degree Homogeneous function


x1 and x2 are on the same line y=x.

the utility on the outside is doubled from the inside.


https://ibb.co/4g40388


prove:

1) x2/x1 = (2)^(1/2)


2)fx(x2,x2)/fx(x1,x1) = (2)^(1/2)

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