msalvador
Nov 6, 2011, 04:06 PM
Hi all! Can the following cobb-douglas utility function represent preference for consuming two goods x and y where I have for the 1st a minimum consumption of 3 units/day and the second 2 units/day?
u(x,y)= 0.7ln(x-3) 0.3ln(y-2)
u(x,y)= 0.7ln(x-3) 0.3ln(y-2)