{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

GA1s08 - an economic analysis 2 Construct a utility...

Info icon This preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
University of Wisconsin Department of Economics Econ 301: Intermediate Microeconomic Theory Korinna K. Hansen Group Assignment 1 Due Date : Feb. 4 & 6, 2008 Reading Assignment: Varian, Chapter 4 Problem Assignment : Here are some critical questions for our class discussion regarding utility. For each one of the following questions you should be able to communicate to an audience all important relevant information in a well-organized and concise way. Make sure that you are ready to present enough detail. 1). There have been two different ways in viewing utility: the old way and the new way. Be prepared to describe the two and describe why the new way is the only useful one for
Image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: an economic analysis. 2). Construct a utility function for perfect substitute goods and explain what this function needs to incorporate. Is there only one unique utility function that can describe perfect substitutes? 3). Construct a utility function for perfect complements and explain what this function needs to incorporate. Is there only one unique utility function that can describe perfect complements? 4). What does the Cobb-Douglas utility function look like? What is special about it? 5). What is marginal utility and what is the marginal rate of substitution? Be prepared to derive and explain their relationship....
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern