Mike Is Maximizing Utility by Working 10 Hours a Week

question 77

Multiple Choice

Mike is maximizing utility by working 10 hours a week and studying 10 hours a week. Mike has only 20 hours to devote to either working or studying. If Mike realizes that another hour of studying will improve his grade on an exam, thus raising the utility of another hour of study, Mike will:

• A) study less to raise the marginal utility of studying even more.
• B) work fewer hours, moving him down along his labor supply curve.
• C) work fewer hours, shifting his labor supply curve to the left.
• D) substitute work for studying, raising his total utility.

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Definitions:

Planning And Control System

A framework used by organizations to align their strategic objectives with practical actions, monitor performance, and manage resources.

Flatter Structure

This refers to an organizational design with fewer layers of management and a wider span of control, aimed at improving communication and decision-making efficiency.

Levels Of Management

The hierarchy of authority within an organization, classifying the different layers of management from top to operational level.

Revenue Centres

Units or departments within an organization responsible for generating the organization's income.