Ron's Utility Function Is Given by U(x,y)= Min[x,y]

question 2

Multiple Choice

Ron's utility function is given by U(x,y) = min[x,y]. If the price of x is 2 and the price of y is 1 and if Ron's preferred consumption bundle is [4,4], then his income is:

• A)16.
• B)10.
• C)14.
• D)12.

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Definitions:

Delivery Cost

The expense incurred in transporting goods from one location to another, often considered in product pricing and logistics planning.

Sales Forecasts

Predictions of the sales that a company expects to achieve in a certain period, based on market research, trend analysis, and historical sales data.

Customer Service Personnel

Employees tasked with assisting customers by addressing inquiries, solving problems, and providing information about products or services.

Unbundling

The process of breaking down a product or service into its component parts to offer them separately, often allowing consumers more choice and flexibility.