It’s possible to tell whether a person has utility u1 (x) = ln x or u2...
It’s possible to tell whether a person has utility u1 (x) = ln x or u2 (x) = ln (2x) (T/F)
Homework Answers
We can know the preferences of a person and can estimate the shape of indifference curve by assuming properties of IC such as convexity, monotonic,rational etc.but if we observe u1(x)=ln x and U2(x)= ln(2x) = ln2+lnx
Hence properties expressed by both utility functions are same and distinguishing becomes impossible
Hence False
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