Consider Two Individuals,Wendy and Jenny,who Discount Delayed Utilities with a Weight

question 117

Essay

Consider two individuals,Wendy and Jenny,who discount delayed utilities with a weight of $\frac{1}{4}$ and $\frac{7}{8}$ ,respectively.Consuming one hamburger gives both Wendy and Jenny benefits worth 16 utils instantly,and it has delayed costs of 20 utils.
a)If the nearby hamburger shop is closed for a week,comment on whether both individuals will consume hamburgers after a week.
b)If a new shop is opened nearby and hamburgers are available for consumption today,comment on whether both individuals will consume hamburgers.

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Definitions:

Reducing Costs

The practice of lowering expenses associated with business operations to increase efficiency and profitability.

3-D Printers

Machines that create three-dimensional objects by depositing materials layer by layer according to digital models.

Opportunity Cost

The value of the next best alternative foregone as a result of making a decision.

Product X

A placeholder name commonly used to represent a generic or unspecified product in discussions of economic theory and marketing.