CES functions are commonly used to represent this quantity, and because it is unitless, any monotonic transform applied to functions representing it gives the same MRS curve. The maximization of this quantity with a budget constraint is often called the consumer's problem. It is constant along an indifference curve, and those curves are concave because the marginal form of it "diminishes" with additional consumption of a good. For 10 points, identify this quantity which is a measure of happiness gained by consumption of
CES functions are commonly used to represent this quantity, and because it is unitless, any monotonic transform applied to functions representing it gives the same MRS curve. The maximization of this quantity with a budget constraint is often called the consumer's problem. It is constant along an indifference curve, and those curves are concave because the marginal form of it "diminishes" with additional consumption of a good. For 10 points, identify this quantity which is a measure of happiness gained by consumption of a good.
CES functions are commonly used to represent this quantity, and because it is unitless, any monotonic transform applied to functions representing it gives the same MRS curve.
{utility} [or {utility} functions]