Re: Utility doubt ! Help !

Posted by Amit Goyal on Jun 06, 2014; 11:37am
URL: http://discussion-forum.276.s1.nabble.com/Utility-doubt-Help-tp7591605p7591690.html

Hi Arushi,

U(x) = (x1)^1/2 + (x2)^1/2  is the monotonic transformation of the following homogeneous function of degree 1: [(x1)^1/2 + (x2)^1/2]^2
Hence, U(x) is homothetic.