carryon2869 carryon2869
  • 13-02-2020
  • Social Studies
contestada

) Can you explain why taking a monotonic transformation of a utility function doesn’t change the marginal rate of substitution?

Respuesta :

gerald4764
gerald4764 gerald4764
  • 14-02-2020

Answer: Applying a monotonic transformation to a utility function representing a preference relation simply creates another utility function representing the same preference utility of utility, basically what this means is that when monotonic transformation of utility is applied the marginal rate of substitution does not.

Explanation:

Answer Link

Otras preguntas

What digit is in the ten thousandths place of the number 43,310.60975?
Is green light most or least useful in photosynthesis? Why?
What is the role of diaphragm in the digestive system?
What is 97.356 in base ten numerals
CONSIDER A TRAIN WHICH CAN ACCELERATION OF 20CM/SEC AND SLOW DOWN WITH ACCELERATION OF 100 CM/SEC FIND THE MINIMUM TIME FOR TRAIN TO TRAVEL BETWEEN THE STATIONS
What digit is in the ten thousandths place of the number 43,310.60975?
Is green light most or least useful in photosynthesis? Why?
Is green light most or least useful in photosynthesis? Why?
a car travelling at 36 km/hr due north turns west in 5 s under constant acceleration and maintains the same speed. the acceleration of the car is
Where is the oldest peice of money?