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:

Product Offering

The complete set of goods and/or services that a company makes available to consumers.

Diversified

A strategy employed to reduce risk by allocating investments among various financial instruments, industries, or other categories.

Product Costing

The process of determining all costs incurred to bring a product to market, including materials, labor, and overhead.

Quality Assurance

A systematic process designed to determine whether a product or service meets specified quality standards.