Discuss why her preferences are non-convex
Consider a bundle { x = 10, y = 3 }. Jessica's preferences can be represented by a utility function: U(x, y) = max(x, y). Illustrate Jessica's indifference curve containing this bundle. Explain why her preferences are "non-convex".
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Consider a bundle { x = 10, y = 3 }. Jessica's preferences can be represented by a utility function: U(x, y) = max(x, y). Illustrate Jessica's indifference curve containing this bundle.
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