Clara's Utility Function Is U(x, Y) = (X + 2)(Y

question 9

Multiple Choice

Clara's utility function is U(x, Y) = (x + 2) (Y + 1) . If her marginal rate of substitution is -3 and she is consuming 12 units of good x, how many units of good Y must she be consuming?

• A) 15
• B) 46
• C) 24
• D) 41
• E) 7

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Definitions:

Target Return-on-investment Pricing

This is a pricing strategy aiming to meet a specified return on investment, tailored to match or exceed company goals.

Experience-curve Pricing

A pricing strategy that takes into account the decreased costs associated with increased production experience and volume.

Profit-oriented Approaches

Business strategies aimed at maximizing profit margins and financial outcomes.

Revenue

The total amount of money that a company receives from its activities, usually from the sale of goods and services to customers, before any expenses are subtracted.