Suppose That Wilma's Utility Function Is Given by U(E)= 100

question 11

Multiple Choice

Suppose that Wilma's utility function is given by U(E) = 100 - 2E²,
Where E = Wilma's work effort in producing homemade dinners,measured in hours per day.Given her utility function,Wilma has an incentive to supply:

• A) maximum effort, because working hard is important to her.
• B) maximum effort, because she is afraid of getting fired.
• C) minimum effort, because she knows she will get fired under any circumstances.
• D) minimum effort, because her utility decreases as effort increases.
• E) maximum effort, because she can increase her salary by working harder.

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Definitions:

Mean High Temperature

Mean high temperature is the average of the highest temperatures over a specific time period for a particular place.

Book Value

The net value of an asset according to its balance sheet account balance, calculated as the original cost minus accumulated depreciation.

Variable Manufacturing Costs

Expenses that change in proportion to the amount of goods or services produced, including direct materials and labor.

Trading In

The act of submitting a used item as partial payment for another item, often seen in automotive and electronics purchases.