Midterm Practice Question

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Jan 28, 2017, 5:42:40 PM1/28/17

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I didn't understand how the Utility function represents a linear function when it has exponents. (see picture)

Screen Shot 2017-01-28 at 2.38.36 PM.png

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Jan 29, 2017, 4:31:45 PM1/29/17

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HI A,

Please use the form under "forum" next time. This is an old forum here simply for reference.

This is a monotonic transformation of perfect substitutes, which is why it has an exponent but is still linear.

Best,

Taylor

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