2 ln XY ln X ln Y This certainly looks very different from our original

2 ln xy ln x ln y this certainly looks very different

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Y MU __ __ β _ βAX =
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Online Appendix: The Mathematics of Utility Functions Chapter 4 4A-54OA.2 figure it outRoyce only cares about how much coffee he drinks. He can buy coffee in 10-ounce cups or in 20-ounce cups. Royce’s preferences are represented by the following utility function:U 1(X,Y) = X+ 2where Xis the number of 10-ounce cups and Yis the number of 20-ounce cups. Determine whether or not Royce’s preferences could also be represented by this utility function:U 2(X,Y) = (50X+ 100Y) 0.5 Y = 1 = 2 MU 2 –  0.5 –  0.5
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